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Tech Industry Faces Political Crisis as Data Centers Draw Bipartisan Backlash

The tech industry is facing a growing political crisis as data centers, the backbone of artificial intelligence, face increasing scrutiny from both sides of the political aisle. While tech companies previously enjoyed a pro-business environment, many politicians are now seeking to curb construction to address concerns over high power bills, water usage, and landscape blighting. Republican Texas Gov. Greg Abbott has paused new buildouts to conduct audits, while Democratic Pennsylvania Gov. Josh Shapiro signed an executive order requiring local community approval before granting permits. In Michigan, GOP Senate nominee Mike Rogers supports a one-year moratorium. This shift reflects a growing bipartisan trend where states are rolling back tax subsidies and imposing new costs on data center operators. Industry leaders are divided on the strategy. Some advocates believe the backlash is a fleeting storm, while others argue that the industry has failed to communicate the benefits of AI effectively. As data centers become a prominent issue for the 2028 presidential election, companies like Meta are beginning to invest in community funds to mitigate the reputational damage of these massive infrastructure projects.

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