US Voters Reject Data Center Expansion in Midterm Ballot Measures
Data center projects faced widespread voter resistance during US midterm elections, with measures restricting construction passing in nearly all states. Only a small town in North Dakota approved a USD 3 billion Oracle-linked facility, citing substantial tax revenues.
Data centers and tech giants faced significant local pushback during last week's midterm elections across the United States. Roughly 45 ballot measures aimed at restricting the construction of data center projects were introduced in ten states, with voters rejecting expansion in nearly all locations. The sole exception was the small town of Harwood, North Dakota, where residents approved a massive USD 3 billion development.
The Harwood Exception and Economic Incentives
Home to 845 residents, Harwood voters were asked whether to increase oversight and restrict a planned 1.67-square-kilometer data center project on the town's outskirts. Approximately 75% of the 430 eligible voters who participated cast ballots in favor of the project, driven by the belief that local economic benefits outweigh potential drawbacks. Blake Henke, president of the town council, told the Washington Post that the facility will generate USD 1.65 million in annual property taxes once completed—six times the town's total property tax revenue collected for all of 2024.
The project is spearheaded by Texas-based Applied Digital and is intended to serve tech giant Oracle. Applied Digital noted that the facility will create around 200 new jobs and highlighted local contributions, including donations to the volunteer fire department. Nick Phillips, vice president at Applied Digital, cited Harwood's cool climate, energy access, and welcoming business approach as key factors in choosing the location.
National Resistance and Public Skepticism
In contrast to Harwood, a broad anti-data center movement is gaining momentum across the United States. Pre-election polling revealed that 76% of voters would oppose the construction of a new data center in their community, while 57% believe that artificial intelligence will cause more harm than good. In Piqua, Ohio, where Meta planned to build a USD 1 billion data center, local voters rejected the initiative and voted out the elected officials who supported it. Meta stated it is proud of its investments in Ohio and will work with local authorities regarding the future of the Piqua project.
The growing resistance threatens to delay or cancel numerous infrastructure initiatives nationwide. Tech giants, including Amazon, Microsoft, Google, Meta, Oracle, and Anthropic, may be forced to finance local power grids, water systems, and cooling infrastructure, or provide financial guarantees to municipalities. Critics, such as software engineer Michael Schwartz, warn that massive industrial facilities will permanently alter small-town community fabrics, leaving taxpayers with long-term burdens.
