Data Center Pushback

With host communities across the U.S. turning against their gargantuan data centers, America’s technology giants are promising to take fewer taxpayer handouts, keep fewer secrets or shower more money onto the communities willing to allow the server warehouses. The promises come as anti-data center sentiment has become a potent issue in the midterm election with control of Congress and 36 governors’ offices on the line. In addition to ramping up financial incentives, officials with Google and Meta said in interviews with The Associated Press they are trying to address mistrust by being more transparent with communities where they would like to build.

The overwhelming victory by the Democrats in the midterm elections shook up Wall Street this week. The biggest tremors were felt in shares of companies tied to the boom in artificial intelligence on concerns that a Democratic Congress will put the brakes on further development of data centers. Defense and oil companies fell on expectations Democrats would push for an end to the U.S.-Iran war, which would likely lower energy prices. Hospital shares rose on the possibility that funding for several government programs could be restored or boosted. Liquor companies and others buffeted by tariffs rose on hopes for relief.

Voters have sent a strong election-year message to President Donald Trump and the new Democratic congressional majority to repair the U.S. economy damaged by inflation. Trump insists the economy is booming and claims he's willing to work with Democrats, though he hasn't done much of that in the past. After a strong jobs report last week, Trump remains defiant and promises to veto anything that he thinks would hurt the country. Democrats are preparing for early fights on government spending, budget deficits, tariffs and Social Security. Rising prices continue to make middle-class lives less affordable. That poses political risks for both parties in future elections.