The Dictatorship

As energy costs rise, everyone wants data centers to pick up the tab

Published

4 months ago

February 14, 2026

As energy costs rise, everyone wants data centers to pick up the tab

HARRISBURG, Pa. (AP) — As outrage spreads over energy-hungry data centerspoliticians from President Donald Trump to local lawmakers have found rare bipartisan agreement over insisting that tech companies — and not regular people — must foot the bill for the exorbitant amount of electricity required for artificial intelligence.

But that might be where the agreement ends.

The price of powering data centers has become deeply intertwined with concerns over the cost of living, a dominant issue in the upcoming midterm elections that will determine control of Congress and governors’ offices.

Some efforts to address the challenge may be coming too late, with energy costs on the rise. And even though tech giants are pledging to pay their “fair share,” there’s little consensus on what that means.

“‘Fair share’ is a pretty squishy term, and so it’s something that the industry likes to say because ‘fair’ can mean different things to different people,” said Ari Peskoe, who directs the Electricity Law Initiative at Harvard University.

It’s a shift from last year, when states worked to woo massive data center projects and Trump directed his administration to do everything it could to get them electricity. Now there’s a backlash as towns fight data center projects and some utilities’ electricity bills have risen quickly.

Anger over the issue has already had electoral consequenceswith Democrats ousting two Republicans from Georgia’s utility regulatory commission in November.

“Voters are already connecting the experience of these facilities with their electricity costs and they’re going to increasingly want to know how government is going to navigate that,” said Christopher Borick, a pollster and director of the Muhlenberg College Institute of Public Opinion.

Energy race stokes concerns

Data centers are sprouting across the U.S., as tech giants scramble to meet worldwide demand for chatbots and other generative AI products that require large amounts of computing power to train and operate.

The buildings look like giant warehouses, some dwarfing the footprints of factories and stadiums. Some need more power than a small city, more than any utility has ever supplied to a single user, setting off a race to build more power plants.

The demand for electricity can have a ripple effect that raises prices for everyone else. For example, if utilities build more power plants or transmission lines to serve them, the cost can be spread across all ratepayers.

Concerns have dovetailed with broader questions about the cost of living, as well as fears about the powerful influence of tech companies and the impact of artificial intelligence.

Trump continues to embrace artificial intelligence as a top economic and national security priority, although he seemed to acknowledge the backlash last month by posting on social media that data centers “must ‘pay their own way.’”

At other times, he has brushed concerns aside, declaring that tech giants are building their own power plants, and Energy Secretary Chris Wright contends that data centers don’t inflate electricity bills — disputing what consumer advocates and independent analysts say.

States moving to regulate

Some states and utilities have started to identify ways to get data centers to pay for their costs.

They’ve required tech companies to buy electricity in long-term contracts, pay for the power plants and transmission upgrades they need and make big down payments in case they go belly-up or decide later they don’t need as much electricity.

But it might be more complicated than that. Those rules can’t fix the short-term problem of ravenous demand for electricity that is outpacing the speed of power plant construction, analysts say.

“What do you do when Big Tech, because of the very profitable nature of these data centers, can simply outbid grandma for power in the short run?” Abe Silverman, a former utility regulatory lawyer and an energy researcher at Johns Hopkins University. “That is, I think, going to be the real challenge.”

Some consumer advocates say tech companies’ fair share should also include the rising cost of electricity, grid equipment or natural gas that’s driven by their demand.

In Oregon, which passed a law to protect smaller ratepayers from data centers’ power costs, a consumer advocacy group is jousting with the state’s largest utility, Portland General Electric, over its plan on how to do that.

Meanwhile, consumer advocates in various states — including Indiana, Georgia and Missouri — are warning that utilities could foist the cost of data center-driven buildouts onto regular ratepayers there.

Pushback from lawmakers, governors

Utilities have pledged to ensure electric rates are fair. But in some places it may be too late.

For instance, in the mid-Atlantic grid territory from New Jersey to Illinois, consumer advocates and analysts have pegged billions of dollars in rate increases hitting the bills of regular Americans on data center demand.

Legislation, meanwhile, is flooding into Congress and statehouses to regulate data centers.

Democrats’ bills in Congress await Republican cosponsors, while lawmakers in a number of states are floating moratoriums on new data centers, drafting rules for regulators to shield regular ratepayers and targeting data center tax breaks and utility profits.

Governors — including some who worked to recruit data centers to their states — are increasingly talking tough.

Arizona Gov. Katie Hobbs, a Democrat running for reelection this year, wants to impose a penny-a-gallon water fee on data centers and get rid of the sales tax exemption there that most states offer data centers. She called it a $38 million “corporate handout.”

“It’s time we make the booming data center industry work for the people of our state, rather than the other way around,” she said in her state-of-the-state address.

Blame for rising energy costs

Energy costs are projected to keep rising in 2026.

Republicans in Washington are pointing the finger at liberal state energy policies that favor renewable energy, suggesting they have driven up transmission costs and frayed supply by blocking fossil fuels.

“Americans are not paying higher prices because of data centers. There’s a perception there, and I get the perception, but it’s not actually true,” said Wright, Trump’s energy secretary, at a news conference earlier this month.

The struggle to assign blame was on display last week at a four-hour U.S. House subcommittee hearing with members of the Federal Energy Regulatory Commission.

Republicans encouraged FERC members to speed up natural gas pipeline construction while Democrats defended renewable energy and urged FERC to limit utility profits and protect residential ratepayers from data center costs.

FERC’s chair, Laura Swett, told Rep. Greg Landsman, D-Ohio, that she believes data center operators are willing to cover their costs and understand that it’s important to have community support.

“That’s not been our experience,” Landsman responded, saying projects in his district are getting tax breaks, sidestepping community opposition and costing people money. “Ultimately, I think we have to get to a place where they pay everything.”

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Follow Marc Levy on X at: https://x.com/timelywriter

The Dictatorship

California voters to decide billionaire tax measure in November

Published

4 hours ago

June 26, 2026

Blue Light Newsroom

California voters to decide billionaire tax measure in November

Jun. 25, 2026, 10:25 PM EDT

California voters will consider a controversial proposal in November to temporarily raise taxes on billionaires after the labor union backing the measure announced Thursday it would forge ahead despite pressure from critics to withdraw it.

The proposal, backed by the Service Employees International Union Healthcare Workers West, would impose a one-time 5% tax on individuals whose net worth exceeds $1 billion and who were living in the state as of Jan. 1, 2026. The goal is to generate $100 billion in revenue, mainly to fund the state’s Medicaid system after federal cuts.

“I am all in on this,” union President Dave Regan said on a Zoom call, adding that opponents of the proposal are “totally out of touch.”

Democratic Gov. Gavin Newsom and many traditional allies of the union oppose the measure. They argue it is a temporary fix for an ongoing problem and that it would push the ultrawealthy to leave the state, taking the money they would contribute in income taxes with them. Newsom, who is considering a presidential run as he prepares to leave office in January, has generally opposed tax increases during his time as governor.

A coalition of healthcare, education and housing groups — including the California Medical Association and California School Boards Association — banded together last week to fight the tax.

“The dangerous wealth tax directly threatens vital funding for education and schools, healthcare and clinics, public safety, and infrastructure projects by making California’s revenue even more volatile,” the coalition said in a statement.

Brian Brokaw, a Newsom political adviser who is leading a political committee opposing the tax, said it would “make California’s biggest challenges worse.”

“Driving away the state’s sustainable tax base for a one-time grab is bad policy and an even worse deal for 40 million Californians who will be left holding the bag,” he said in a statement.

Under the proposal, the state would spend the money generated from the tax over multiple years. The nonpartisan Legislative Analyst’s Office estimates that the proposal would generate tens of billions of dollars in the first few years, but that income tax revenues would subsequently decline by hundreds of millions of dollars annually.

Many of the Silicon Valley tech moguls who oppose the measure have already moved their assets to other states or threatened to do so to avoid the possible tax. They have also spent millions to try to defeat it.

Since the proposal was announced in October, Google co-founder Sergey Brin has donated $82 million to a political committee called Building a Better California that backs a variety of initiatives designed to blunt the billionaire tax proposal. It has raised more than $118 million, counting Brin’s contributions, from fewer than a dozen donors.

California relies on its top 1% of earnersfor nearly half of its personal income tax revenue.

The union offered to scale back its proposal last week, asking Newsom to back a 2% tax on billionaires instead. But the governor’s office said the lower rate didn’t change his stance.

The proposed tax may have piqued the interest of many Democrats because it comes at a time when they are particularly concerned about affordability, income inequality and federal cutbacks to government programs, said Martin Gilens, a political science professor at the University of California, Los Angeles.

“There’s kind of a perfect storm that sort of bolsters preexisting inclinations to be sympathetic to the idea of raising taxes on the well-to-do,” he said.

But there’s a catch. Support for ballot initiatives often declines as the election nears, and if the measure passes, it’s likely to face legal challenges, Gilens said.

The Dictatorship

Flattery, secrecy and chaos: Bill Pulte’s first week as intel chief

Published

4 hours ago

June 26, 2026

Blue Light Newsroom

Flattery, secrecy and chaos: Bill Pulte’s first week as intel chief

Jun. 25, 2026, 7:15 PM EDT

Since taking office one week ago, Bill Pulte, the acting director of national intelligence, has busied himself on social media posting flattering photos of President Donald Trump, trivia about a former counterintelligence agent and praising his current staff.

What the Trump loyalist with no intelligence experience has not done is address the public about his plans, or calm the unease and confusion inside the Office of the Director of National Intelligence, which is being described by top officials as “chaotic” amid firings of senior personnel with threats of more to come.

One image posted to the official X account of the Office of the Director of National Intelligence, apparently artificial intelligence-generated, features Trump raising a clenched fist in the air with two B-2 stealth bombers in the sky behind him. Another is an image of the president, his fist clenched, glowering as he stands behind the Oval Office’s Resolute Desk.

In another post, Pulte, who was expected to gut the workforce of the National Counterterrorism Center, instead declared the staff there “true professionals and American patriots” after he said he spent time with them, adding “it is a privilege to work beside them.”

And in an apparent attempt at levity, Pulte reposted a message reminding Americans that Tuesday was “National Typewriter Day” and informing them of the role that a former Army counterintelligence agent played.

“Fun CI fact,” the post reads. “Former Army CI Special Agent Leroy Anderson composed ‘The Typewriter’ on October 9, 1950.”

But Pulte’s arrival has sparked anxiety and fear among the office’s workforce, three former U.S. intelligence officials told MS NOW, granted anonymity to address a sensitive topic.

They said that a half dozen political appointees were removed from their posts and several dozen staffers were sent back to their home intelligence agencies. Beyond that, little else is known about Pulte’s plans.

Rep. Jim Himes, D-Conn., the top Democrat on the House Intelligence Committee, told MS NOW that his requests for more information from the office, known by the acronym ODNI, have been rebuffed.

“I’ve been calling over there all day and can’t get my calls returned,” said Himes.

He later said, “I spoke directly to their office of congressional affairs. They said they had nothing for me.”

“It seems like it’s totally chaotic at the Office of the Director of National Intelligence,” Sen. Mark Warner, D-Va., the ranking Democrat on the Senate Intelligence Committee, said on a podcast Wednesday. “There was word that there was going to be firings and then he said he changed his mind. We don’t know.”

Marc Polymeropoulos, a former senior CIA official and now an MS NOW contributor, said that staff in the intelligence community do not know what to think.

“Everyone is in the same boat and unsure of what is going on,” he said. “That said, there is no love lost for the DNI, as many believe that there is redundancy that does need to be cut.”

The other former U.S. intelligence officials said they agree that the Office of the Director of National Intelligence is in need of reform. The agency was created after a lack of information sharing among U.S. intelligence agencies played a role in the failure to stop the Sept. 11, 2001, attacks. ODNI’s mission is to ensure that the country’s now 18 different intelligence agencies share information with one another.

But the former intelligence officials said Pulte is patently unqualified to design or carry out those reforms.

“As with many things Trump alights upon, there is a sliver of truth here but he goes about addressing it in the worst possible way,” a former senior U.S. intelligence official told MS NOW, granted anonymity over concerns of retaliation. “But mass firings without any kind of sense of what you are trying to accomplish is addressing it in the most ham-handed way.”

That former official, as well as Warner and Himes, have said they fear that Pulte’s mission is to use his position as the nation’s top intelligence official to help Trump interfere in the midterm elections in November.

Pulte, who simultaneously serves as the Trump administration’s top federal housing official as head of the Federal Housing Finance Agency, used government mortgage information to file several criminal referrals against Democrats whom Trump considered enemies, including Sen. Adam Schiff of California and New York State Attorney General Letitia James. None of Pulte’s referrals have resulted in criminal convictions.

One fear expressed by Warner and some former intelligence officials is that Pulte may try to falsely claim that his office has found evidence that foreign governments are secretly funding Democratic candidates.

One way he could do that, they say, is by falsely claiming foreign actors have hacked U.S. voting machines and altered vote totals in favor of Democrats. And Pulte and FBI agents could seize voting machines, ballots and election records in November — as Gabbard did in Fulton County, Georgia, last year at Trump’s behest — as part of voter fraud investigations that please the president.

“I have to tell you, I was extraordinarily concerned about the former director of national intelligence, Tulsi Gabbard, interfering in our election,” Warner told NPR earlier this month. “The concerns I had with Tulsi Gabbard now, upon reflection, look small versus the concerns I have with Bill Pulte.”

David Rohde is the senior national security reporter for MS NOW and a two-time winner of the Pulitzer Prize for International Reporting. Previously he was the senior executive editor for national security and law for NBC News.

The Dictatorship

Barack Obama says Trump gives him a ‘room in his head’

Published

4 hours ago

June 26, 2026

Blue Light Newsroom

Barack Obama says Trump gives him a ‘room in his head’

Jun. 25, 2026, 5:37 PM EDT

Former President Barack Obama slammed President Donald Trump for obsessing over him while serving in the nation’s highest office.

“I obviously, you know, have a room in his head. A suite in his head,” Obama said an an episode of the podcast “All The Smoke,” posted Wednesday.

“Look, first of all, when I was president, the last thing I had time to do was worry about what somebody said, or what my predecessor did,” Obama told the two hosts, former NBA players Matt Barnes and Stephen Jackson. “They’re gone. I’ve got work to do.”

Trump has a long history of publicly insulting the former president, often invoking Obama’s middle name, Hussein.

Trump has also heavily promoted the false and racist “birther” conspiracy theory, which claimed that Obama was ineligible to serve as president because he was born in Kenya rather than the United States.

Earlier this year, Trump drew criticism after sharing a racist artificial intelligence-generated video on his Truth Social account depicting the former president and former first lady Michelle Obama as apes. The video was later deleted, and Trump did not apologize.

Before launching the war against Iran with Israel on Feb. 28, Trump repeatedly criticized the Joint Comprehensive Plan of Action, the 2015 diplomatic agreement primarily negotiated by Obama that also limited Iran’s nuclear capabilities in exchange for sweeping economic sanctions relief.

More recently, Trump trashed the newly debuted Obama Presidential Center in Chicago as a “very unattractive building” and “total disaster,” adding that when his presidential library opens, it will be “on time, on budget, best location in Miami.”

Without mentioning Trump by name, Obama criticized leaders who fixate on their predecessors, characterizing their priorities as misplaced.

“If you’re doing the job right, everyday, you’ve got five, ten things that are real hard. And you have to be constantly focused,” Obama said.

“The idea that I’d be worrying about somebody who came before and me trying to measure, ‘What’s he done today?’ Constantly worrying about that is a strange thing to me. It shows me somebody who’s not focused on the American people and the job they’re supposed to do.”

Erum Salam is a breaking news reporter for MS NOW, with a focus on how global events and foreign policy shape U.S. politics. She previously was a breaking news reporter for The Guardian.