Republicans Join Democrats in Questioning Data Center Expansion

In July, Governor Kathy Hochul enacted the nation’s first moratorium on constructing hyperscale data centers, citing concerns over rising electricity bills, resource depletion, and uncertainty for residents. Shortly thereafter, Governor Greg Abbott announced a Texas-wide freeze on new data center approvals until regulatory agencies reassess their potential effects on the state’s power grid. Both actions underscore an unusual bipartisan wariness, as even staunch free-market advocates like Texas resident Nikki Meador voiced opposition to outside investment that might jeopardize local communities.

While critics point to water and noise issues, studies show data centers use far less water than golf courses or almond farms and have not driven up electricity prices. The article warns that yielding to moral panic over data centers could lead to economically harmful bans, echoing past populist pushes against other technologies and regulations.