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REGULATION · 1 SOURCE · The Verge AI

Texans coalesce against data centers as AI-driven growth fuels local backlash

A statewide coalition called We the People Texas, including the Texas NAACP and local grassroots groups, is mobilizing to block or slow hyperscale data center projects over concerns about water use, tax subsidies, and new power infrastructure; an August poll found 57% of Texans oppose building more data centers. State tax exemptions enacted in 2013 and expanded in 2015 helped spur rapid data center growth to support generative AI, and state officials estimate the breaks could cost billions in lost sales-tax revenue.

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REGULATION · 1 SOURCE · The Verge AI

Data center backlash reshapes 2026 US races as AI-aligned PACs spend big

Rapid expansion of hyperscale data centers has become a flashpoint in 2026 congressional and gubernatorial races, with candidates across parties proposing moratoria, ending tax breaks, and tighter local control. AI-aligned groups and super PACs — including Leading the Future (backed by Marc Andreessen and OpenAI president Greg Brockman, which has spent $45 million) and Anthropic-backed Public First Action (raising $80 million) — are pouring money into battleground races and ads tying data-center development to broader AI policy debates.

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