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How data centers became the new midterms bogeyman

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Data centers, once popular with elected officials in both parties, are fast becoming a midterms bogeyman.

Democratic governors are racing to rein in new warehouse projects they once offered up millions of dollars in tax incentives to secure as they face voters furious over soaring electric bills. And President Donald Trump, who has slashed red tape around the industry he’s lauded as a job engine, used his Tuesday State of the Union address to announce he’s told major tech companies to build their own power plants to shield ratepayers from further hikes.

It’s a remarkable pivot by leaders of both parties. And it reflects the rapidly shifting politics around data centers they had hailed as economic generators but are now retreating from as voters blame their proliferation for rising utility costs — part of an overall frustration with high prices that is dominating the midterms.

“The fact that everyone is talking about this all of a sudden shows how quickly this issue is moving and that politicians are reflecting the frustration that people are feeling over paying so much on their energy bills while data centers get tax breaks,” said Jared Leopold, a Democratic strategist and co-founder of climate advocacy group Evergreen Action.

These recent contortions also show both parties are still grappling with the way forward on an increasingly potent political issue.

Democrats harnessed voters’ frustrations over rising utility bills — and their fears that power-hungry data centers could push them higher — to win governor’s offices in New Jersey and Virginia and oust two Republicans on Georgia’s utility regulating commission last fall.

Voters’ worries haven’t ebbed. The POLITICO Poll found in mid-January that voters’ chief concerns about data centers involved household costs. Asked about the drawbacks to building data centers in the U.S., 29 percent of Americans said it would mean higher electricity bills, 24 percent said an increased risk of blackouts and 23 percent said the projects would cost taxpayer money.

Both parties have seized on making tech companies pay for their power as a salve.

Just six months ago, Trump declared he was accelerating federal permitting for data centers and headed to western Pennsylvania to praise companies for investing tens of billions of dollars in energy infrastructure as part of his push to be the “world’s No. 1 superpower in artificial intelligence.”

But on Tuesday, the president said he was negotiating with the companies behind data centers to build their own power plants to secure their power supply “while at the same time lowering prices of electricity” for Americans.

Trump was light on the details about what his “ratepayer protection pledge” actually meant in practice, though the White House said tech companies are expected to head to Washington next week to sign the agreements. But the president has been signaling such a step since at least January, when he said he was working with Microsoft to “ensure that Americans don’t ‘pick up the tab’” for data centers’ power consumption. He also banded together with Democratic governors to push grid operator PJM to control energy prices and tech companies to shoulder the burden of power costs.

Brendan Steinhauser, a Texas-based GOP strategist, said the shift shows Trump and his team “don’t want to be on the wrong side of this.”

“This is smart by the administration to recognize that there are concerns about energy prices and water usage,” said Steinhauser, who serves as CEO of The Alliance for Secure AI, a group that backs more AI industry regulation. “They don’t want to be seen as allowing the companies to accelerate without any input from the community, they don’t want to be seen as on the side of allowing energy prices to go up.”

Democrats don’t, either.

At least half a dozen Democratic governors — several of whom are potential 2028 presidential contenders — used their annual state-of-the-state addresses to pitch regulations or call to retract old sweeteners for an industry they had previously championed.

Illinois Gov. JB Pritzker is pushing to hit pause on tax incentives he’s long touted to lure data centers to his state. Arizona Gov. Katie Hobbs is seeking to eliminate the tax breaks for tech companies she previously backed as a state lawmaker a decade ago, while looking to impose new water-use fees.

New York Gov. Kathy Hochul, who was positioning her state as a “national leader in AI research and innovation,” has rolled out plans to make data center operators pay more for energy or supply their own. Connecticut Gov. Ned Lamont signaled his state would look to “slow down new data centers,” unless they add more power generation.

And Pennsylvania Gov. Josh Shapiro, who streamlined permitting to help his state be “all in on AI,” is now calling on his legislature to codify a set of “responsible infrastructure development” standards for data center developers — including hiring locally and bringing their own power generation — as he looks to mitigate voters’ concerns. A survey released Wednesday from Pennsylvania pollster Quinnipiac University showed 68 percent of registered voters would oppose a data center being built in their community, including 81 percent of Democrats, 67 percent of independents and 53 percent of Republicans.

Shapiro insisted his new guardrails were “not a shift” when asked last week about the policy rollout. Instead, he cast them as part of his ongoing efforts to balance creating jobs with “holding down energy costs.”

“I’ve always been for the end-users having to bring their own power or generate new power and pay for it so we’re not burdening the local community,” Shapiro told Blue Light News on the sidelines of the National Governors Association winter meeting in Washington last week. “We just are more open about it, so anyone thinking about doing business in Pennsylvania now knows what those standards are going to be.”

The proliferation of data centers across battleground states has similarly pushed energy costs to the forefront of key congressional campaigns. Imposing guardrails on the artificial intelligence industry has become a rallying cry for insurgent candidates in primaries and an attack line in competitive districts. Calls are growing on both sides of the aisle for a moratorium on new projects.

Politicians are “beginning to catch up with where their constituents are” in opposing unregulated data center growth, said Mitch Jones, the managing director of policy and litigation for environmental firm Food & Water Watch, which is pushing for a construction pause.

But Maryland Gov. Wes Moore, who has sketched out a similar set of rules for new projects in his state, argued that a “binary” approach to data centers was misguided.

“Oftentimes, when people talk about data centers, it’s either like what they’ve done in Northern Virginia, which is kind of like, ‘let them just run wild and do whatever they want to do.’ Or it’s like trying to put a ban on them. I don’t think either is the right answer,” Moore said in a brief interview at NGA. “I understand how this critical infrastructure is necessary for economic growth. … But industry cannot determine the rules.”

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Canada’s biggest fan may be its biggest problem

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OTTAWA — Mark Carney may be Canada’s loudest booster at the World Cup, but some of his countrymen fear he may be hurting more than helping — because he always does when it comes to sports.

In March 2025, the new prime minister joined the Edmonton Oilers for a pre-game skate. That night the Oilers fell to the Winnipeg Jets, followed by a wave of injuries on the team. Former Oiler and “Spittin’ Chiclets” podcast host Ryan Whitney took to X: “The Carney Curse is real for Edmonton. What the hell just happened. Guy is on the ice with the Oil this morning and now everyone is injured.”

Now some Canadians are worried that their prime minister has brought the “Carney Curse” to the World Cup, blaming him for Canada’s defeat against Switzerland on Wednesday. His country’s only only goal coincided with a moment that Carney left his box seat at Vancouver’s BC Place.

For a brief, glorious moment last week, the Ottawa fishbowl wondered if the curse had been broken. Carney skipped Canada’s World Cup opener against Bosnia-Herzegovina. But then, after days of anxious whispers over whether he’d jinx the squad, the prime minister witnessed Canada thrash Qatar. If Canada had beaten or tied the Swiss, the team could’ve played as many as two elimination games in Vancouver. With the loss, they fell to runner-up — and a knockout-round game in Los Angeles against South Africa on Sunday.

Canada’s men’s soccer team joins an ever-growing list of inadvertent “victims” of prime-ministerial fanhood, including: the Toronto Blue Jays, who lost the World Series after Carney visited the team; the Canadian women’s rugby team, for whom he traveled to the United Kingdom to cheer on at the World Cup last summer; and the Montreal Canadiens, whom he dubbed “Canada’s team” during the Stanley Cup playoffs.

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Orange gush: KC mayor parties with the Dutch

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Kansas City Mayor Quinton Lucas danced with Netherlands fans to their famous song “Links Rechts” ahead of the Orange Walk in Kansas City’s Power & Light District on Thursday. The Dutch supporters — along with the Scots and the Norwegians — have been some of the most exuberant in backing their team around the U.S. One local told the Kansas City Star that the experience topped a Kansas City Chiefs Super Bowl parade.

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How much longer can Donald Trump go missing from the World Cup?

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Some of soccer’s biggest names have to come to play at the World Cup: Lionel Messi, Kylian Mbappé, Erling Haaland, Vinícius Júnior and now even Cristiano Ronaldo have left their mark on the score sheet.

But one key player who loomed over just about every step of pre-tournament preparations has been notably invisible: Donald Trump.

Pre-tournament fears that the American president would trample on the soccer jamboree have, so far, proved largely unfounded after the first two weeks of competition. Trump has yet to attend a match, and even as the U.S. team mounts its best World Cup performance in decades he has done little to claim the success as his own.

Aside from persistent complications surrounding the Iran squad’s entry and exit to the U.S. for games, and the ban on a Somali referee from entering the country before the tournament started, political incidents involving the Trump administration and soccer — or leaders of other World Cup countries, including the neighboring co-hosts with whom he often spars — have been few and far between.

No ICE arrests around matches. No heavy-handed policing like soccer fans sometimes suffer in Western Europe. No beef between Trump and Democratic leaders of cities and states where some of the tournament’s highest-profile matches have been played.

As one European-based senior sports executive told Blue Light News last year about the administration and the World Cup, “Why would they want to f—k it up?”

Secretary of State Marco Rubio attended the USMNT’s opener against Paraguay in Los Angeles, while Health and Human Services Secretary Robert F. Kennedy Jr. — along with other senior Cabinet officials — was at the American match vs. Australia in Seattle. Though Trump himself hasn’t been to a game yet, he did send the U.S. squad a message of support at the start of the tournament.

In an interview last week with Blue Light News, Massachusetts Democratic Gov. Maura Healey said her administration had worked with the U.S. government “around transportation funding, security funding. That’s the way it should be. There should be that kind of work and coordination.”

Trump allies are on the same page as the tournament progresses serenely through the group stage, beyond continued griping about high ticket prices and transport to and from some stadiums.

“It’s been really good to see the coordination, certainly from a law enforcement perspective,” said Andrew Giuliani, head of the White House’s World Cup task force, as he praised cooperation with police and security services in blue states like New York, New Jersey and California, where the administration doesn’t “agree eye to eye with the mayors and the governors.”

“It’s fun to see moments where the country can come together as well, and I think this is one of those great moments over our 250th birthday where that can happen,” he added.

This week, FIFA chief Gianni Infantino confirmed what many have expected: Trump plans to attend the final on July 19 and help present the winner’s trophy. Can a president who loves the spotlight stay away til then?

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