❯ Trump Says Communities Resisting Data Centers Are “Making a Mistake” as Bipartisan Backlash Mounts

STATEMENTIn an interview, Trump said communities resisting data centers are “making a mistake,” arguing the projects bring “lots of jobs and money.” Axios reported the interview on August 23, with the remarks landing as opposition intensifies across party lines.

RESISTANCEAccording to Data Center Watch, Q1 2026 saw the highest concentration of rejected and delayed data center projects on record, with signs the resistance will keep climbing through the year. The disputes now boil down to two questions: whether projects must pass local approval, and who pays the added electricity costs.

BIPARTISAN PULLBACKThe backlash has reached the governor level, crossing party lines. Pennsylvania Democratic Governor Shapiro signed an executive order requiring new projects to first obtain local approval and specify who will bear electricity costs before they can move forward; Texas Republican Governor Abbott announced a pause on new data center construction pending the results of a statewide audit. Both had previously backed data center projects — but in this 2026 election year, multiple governors seeking reelection, including them, have shifted course at the same time.

STAKESAt the core of the dispute is who pays for electricity. Data center tax revenue and jobs land at the county level, but higher power prices are spread across all ratepayers on the grid — an equation that is especially glaring in an election year. Hyperscalers’ site-selection models therefore must add one more variable: not just power supply and land prices, but the political cost of local approval. That compute capacity slated to come online around 2027 — a portion of it is still stuck in hearings.

▪ SIGNALCompute expansion has hit the ballot box for the first time — whether a project gets built no longer depends only on grid capacity, but also on that one vote in the county council.