Calling for a moratorium

Several candidates have embraced temporary moratoriums or slower approval processes as a way to combat rapid data center growth, arguing that states should better understand the impact of data centers before allowing additional construction.

In Georgia, Democratic candidate Keisha Lance Bottoms has called for a construction moratorium so the state can “reassess” the impact data centers have on local communities. The former Atlanta mayor has emphasized that the Peach State “needs to slow down” on the facilities’ construction.

“Keisha will stand up to protect Georgia consumers and communities from high energy bills,” TaNisha Cameron, her campaign communications director, said in a statement to Bloomberg. “Georgia’s status quo of unchecked data center construction without a plan is not acceptable.”

Bottoms’s competitor, Republican Rick Jackson, has stopped short of calling for a moratorium, instead saying any decision should be left up to communities.

Jackson, who has invested in a Georgia facility, said data centers could provide an economic boon but that the final decision is up to residents.

“I would never suggest that happen over the will, the obligation of the people that they want, but I think they ought to take a real good look at it,” Jackson said. “But, make sure it’s done correctly to solve the problems — economics — for that community.”

In Florida, Democratic hopeful David Jolly has called for a statewide moratorium on data centers, citing the state’s lack of “necessary environmental protections.”

The push for temporary moratoriums has emerged as the populist stance among gubernatorial candidates, with some taking up the fight after previously backing initiatives that promote data center construction.

Kansas Democratic state senator and gubernatorial candidate Cindy Holscher previously supported legislation intended to expand data center construction and give tax breaks to developers, but has since reversed course.

“I am not opposed to data centers,” Holscher told the Johnson County Post. “I am opposed to asking Kansas families, farmers, and small businesses to subsidize some of the wealthiest corporations on Earth without any clear guarantee that Kansans will benefit.”

While many of those in favor of statewide moratoriums fall on the left side of the aisle, Republican gubernatorial hopeful James Fishback has emerged as a GOP supporter of data center halts, pledging to ban all such facilities in the state if he is elected.

For many candidates, making their stance on data centers results from fielding questions from voters concerned about the facilities popping up in their backyards. In Wisconsin, socialist candidate Francesca Hong has made a data center moratorium a pillar in her campaign.

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Hong proposes a moratorium similar to other candidates, but she has made it one of the main issues on her campaign website.

“Fran is the only candidate in this race who’s calling for a data center moratorium, pausing data center construction until we have a full record of their environmental and energy risks and how to mitigate them, because she knows we need to understand what we’re signing up for before we commit ourselves to it,” her website reads.

Making data centers pay their own way

Several candidates have taken an investment-friendly approach, proposing policies that prevent residents from bearing the cost of data centers’ energy usage.

Florida Republican gubernatorial candidate Rep. Byron Donalds (R-FL) has introduced federal legislation that would require large AI data centers to secure electricity and water from private sources rather than relying on public utility systems.

Donalds has said Florida should remain open to data center development, adding that moratoriums may be too restrictive.

“That’s a signal to the business community that this is not a place to invest capital,” Donalds said. “This is not a place to invest in businesses. And so we have to be balanced and be mindful about that.”

Kansas Republican gubernatorial candidate Ty Masterson has emphasized the importance of data centers in the AI race against China but has backed protections for communities near them.

“I passed the law that stops data centers from shifting their electricity costs onto Kansas families and bans China and other foreign adversaries from our power grid,” Masterson told the Johnson County Post. “That’s the standard: they build here on our terms, or they don’t build here.”

Like Jackson in Georgia, Masterson stressed the need for communities to make the final decision.

“Local communities should decide what gets built in their backyard,” Masterson said. “And regardless of any incentives, the water and grid protections stay regardless. If a deal doesn’t work for Kansas ratepayers, it doesn’t happen.”

In Ohio, both candidates have promoted data centers that pay their own way so that communities are not burdened with higher energy bills.

Republican Vivek Ramaswamy has been a staunch supporter of the facilities, arguing they are both good for the economy and necessary to meet state data storage and processing needs.

A biotech entrepreneur, Ramaswamy has argued that requiring data centers to have “the best technology” reduces water usage, in turn lessening the burden on communities. Like Donalds, Ramswamy has said data centers should privately source water and electricity.

“If you’re going to use a whole bunch of energy as a demand user, a hyperscaler, you should bring at least the energy that you’re using,” Ramaswamy said.

On the other side of the aisle in the Buckeye State, Democrat Amy Acton has taken on a similar, but firmer stance on data centers bearing energy costs. Acton’s running mate, David Pepper, told the Ohio Capital Journal that data centers should be responsible for their own energy usage, full stop.

“Nobody should have to pay a dollar more on anything because the data centers are moving in,” Pepper told the outlet. “That should be an absolute baseline, red line of guardrail by the state of Ohio for any future developments.”

Acton later added to her running mate’s sentiment, arguing that data centers should also be responsible for their own waste. Her comments came after the Ohio Environmental Protection Agency announced a plan to allow data centers to discard wastewater into some bodies of water.

“Ohio families shouldn’t have to worry about the quality of their air, their water or the health of their communities because a billion-dollar company wants fewer rules,” Acton said in a social media post.

In Wisconsin, Republican gubernatorial front-runner Rep. Tom Tiffany (R-WI) has often opposed data centers because of the possibility of taking up farmland. However, he has noted that legislators need to move on the issue “responsibly” to both attract investment and protect ratepayers.

“As demand for internet infrastructure continues to grow, data centers present new opportunities for economic development, but like any innovation, they must be developed responsibly,” he said in a statement to the Wisconsin Examiner. “Wisconsin families and small businesses should not be left footing the bill for increased electricity demand, local residents deserve a seat at the table when decisions are made about these projects, and taxpayer subsidies should not be used to build data centers on productive farmland. Growth should be responsible and transparent, without shifting costs onto existing ratepayers.”

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The divide on how to proceed with data center development reflects the broader debate unfolding across the gubernatorial races. Candidates generally agree on protecting communities as demand for data centers grows, but they differ over whether governors should halt the industry, regulate costs, or defer to local governments.

As residents increasingly organize around proposed projects, candidates are being forced to take a stance on the facilities, as well as who should approve and pay for them.