Thursday, October 1, 2026
This is a time of controversy. Politicians are jockeying for attention in what promises to be a very close national and state election cycle. There are countless issues that are of concern to voters, mostly centering on the cost of living. But there is a relatively new issue as well, and it could be a make-or-break matter in many contests. It’s the rise of data centers and their cost to the public.
Data centers house computer systems that help train artificial intelligence models. To date there are over 4,000 already in operation, mostly in Virginia, Florida and California, and 3,000 more are being planned or are under construction. But many local governments that approved data center construction in their communities are finding out that these facilities use enormous amounts of electricity and water.
Because the data center boom has happened so fast, many federal and state candidates who are campaigning for the November elections are calling for a moratorium on new construction. In addition, numerous states have passed laws that do just that, and New York is on the verge of approving a one-year moratorium on new centers. The question for every public official is whether a moratorium is needed, and what the consequences of stopping data center construction would be.
There is no question that these facilities are being built at a rapid pace, and most local governments have had little or no time to consider all of the potential fallout. A number of communities have made agreements with A.I. companies that include lucrative benefits for taxpayers. In a few cases they have used cash windfalls to lower property taxes.
The problem, however, is that data centers are a legitimate challenge to elected officials who aren’t always capable of understanding what the centers do and how the public may react. It’s a balancing act that isn’t working well, and the public has now become fired up, because people are afraid of rising electricity rates and don’t want their water supply depleted.
Industry may say, relax and let’s move forward, but that isn’t the solution. Data centers increase local tax revenue, but every new facility also brings with it a host of serious issues. A data center can consume as much electricity as tens of thousands of homes. The grid system that delivers power in the United States is very old, and not capable of handling excessive demand. The more energy a data center consumes, the greater the chance that local power bills will go up. As is, thanks to the Iran war, electricity bills have exploded, which doesn’t help.
A large data center can use over a million gallons of water per day, which is a strain on the water system. In addition, on-site backup diesel generators and cooling turbines generate significant noise and emissions. It’s no wonder that voters around the country who hear horror stories about the centers are demanding a moratorium on new construction.
Rather than debating whether that construction should stop, the data center industry should create an aggressive campaign to show how new centers can be assets to nearby towns and villages. It should hold community meetings to explain how an A.I. facility can affect local resources. If a company feels it has an honest, positive story to tell, it should tell it. That would be the best way to dispel rumors that have inflamed the issue nationally.
Some people will always question new big things, and data centers are the newest big thing. They’re necessary because they’ve become the foundation of the modern digital economy. We need places for data storage, streaming and banking, and they can’t just exist without a place to accept all the internet clutter that we create. Without data centers, remote work and digital services couldn’t happen.
Government can pass laws holding up their construction, but it’s up to the data industry to educate the public about what the centers do and why we need them. On top of that, there should be no secret deals with any municipalities, which will only fuel public resistance. Both sides have responsible roles to play in this fast- moving world.
Jerry Kremer was a state assemblyman for 23 years, and chaired the Assembly’s Ways and Means Committee for 12 years. He currently chairs the Capitol Insight Group, a government relations firm. Comments? jkremer@liherald.com.
