Data centers spark affordability concerns, impacting election outcomes

El-Sayed was among several victors Tuesday who incorporated the rapid expansion of artificial intelligence infrastructure and its effect on living costs into their campaigns. Exit polls conducted by the Associated Press revealed that voters prioritized affordability as a key issue. Across the Midwest and Mid-Atlantic regions, rising electric bills have become a tangible manifestation of this concern, with candidates from both parties pointing fingers at data centers.

The surge in electricity costs is largely attributed to the PJM Interconnection, the grid operator for 13 states from New Jersey to northern Illinois. Capacity prices, which compensate power plants for guaranteeing future supply, have dramatically increased, rising from $28.92 per megawatt-day in 2024-25 to $329.17 for 2026-27. Monitoring Analytics, PJM’s independent market monitor, estimates that data centers were responsible for 63% of this price increase in the 2025-26 auction, equating to approximately $9.3 billion recovered from customers through higher rates, as reported by the Institute for Energy Economics and Financial Analysis. This translates to roughly $16 more per month for the average residential bill in Ohio and $18 in western Maryland, according to IEEFA estimates.

Further increases are possible. Consulting firm ICF projects that residential rates across PJM could rise by 30% to 60% by 2030. A recent Consumer Reports survey found that 81% of respondents who have lived in the same home for at least three years have experienced rising electricity bills, and 84% would support their utility creating a separate rate category for large energy users like data centers.

Candidates who successfully addressed this issue made electricity affordability a central theme. El-Sayed’s plan advocated for “no rate hikes,” proposing that data centers should bear the costs of their energy consumption. He held a rally near a new data center campus in Saline Township, Michigan, two months after OpenAI and Oracle commenced construction.

In Ohio, Democrat Sherrod Brown defeated Republican Sen. Jon Husted by criticizing him as “the face of data centers,” highlighting deals Husted brokered as lieutenant governor. Brown campaigned on eliminating tax breaks for data center companies and mandating that they cover the costs of utilities used by their facilities. Logan Phillips, founder of the election forecasting site Race to the White House, noted that Brown focused on the issue “way before anyone else was focused on it,” while Husted had been “basically at every single ribbon cutting for data centers across the state.”

“Boy, did that not age well,” Phillips remarked.

As the election cycle progressed, Republicans also began to address the issue. In Michigan, El-Sayed’s opponent, former Rep. Mike Rogers, expressed support for a one-year moratorium on new data centers. Ohio’s gubernatorial race saw both Democrat Amy Acton and Republican Vivek Ramaswamy proposing similar moratoriums. In Florida, Republican Byron Donalds proposed restrictions on data center development.

Direct voter action largely mirrored these sentiments. At least 14 Ohio municipalities passed bans or restrictions on data centers Tuesday, including Sunbury, where a ban targets a planned Amazon data center. Across 10 states, voters considered 41 data center-related measures.

A recent Heatmap poll revealed that over 70% of Americans would oppose a data center planned for their area, with rising electricity prices being the primary concern.

The Ohio Manufacturers’ Association disputes the claim that data centers are driving up energy costs, asserting, “Ohio does not have a data center cost crisis.” Amazon has declined to comment on whether Tuesday’s ballot measures will affect its expansion plans, maintaining its commitment to the communities where it operates.

The AI industry responded with a media campaign. Build American AI, a nonprofit linked to the Leading the Future super PAC network, spent at least $2.54 million on Ohio advertisements emphasizing the economic benefits of data centers, according to an investigation by DeSmog.

The incoming Congress may consider the issue further. Goldman Sachs strategists suggest a Democratic Congress could potentially reduce data center tax incentives, although a nationwide moratorium remains unlikely. Data center capacity under construction is currently up 48% nationwide, according to Reuters.