Episode summary
Why Both Parties Suddenly Agree on Hating Data Centers
Summary
The host argues that data centers have become a rare bipartisan political target because electricity bills are rising quickly and voters increasingly blame AI infrastructure for the increase. He says Greg Abbott has effectively stalled about 1,800 data centers in Texas and Josh Shapiro has slowed development in Pennsylvania, making the backlash a national issue rather than a fringe concern.
He ties the anger to concrete cost pressure, citing claims that electric bills are up more than 25% in some places, that Georgia families now pay about $175 a month on average, and that seven in 10 Americans do not want a data center near their town. In his view, that resentment could matter in the midterms because it may boost turnout against the incumbent party.
The host is strongly opposed to the Democratic idea of a data center moratorium, saying it would freeze AI development, hit economic growth, and damage the stock market and the 401k. He is also skeptical of the Republican “ratepayer protection pledge,” arguing that voluntary promises are not enough and that any workable compromise should force big tech builders to pay the extra power costs themselves.
Key takeaways
- The host says Texas and Pennsylvania show that resistance to data centers is now bipartisan, not ideological.
- He cites claims that electricity bills are rising sharply, including more than 25% in some regions and $175 a month in Georgia.
- The host argues that 75 data center projects worth $130 billion were blocked or stalled in the first three months of the year.
- He says a Democratic freeze on data center development would crush AI-related growth, jobs, and the stock market.
- He prefers a state-by-state rule forcing big tech to cover the added electricity costs instead of passing them to consumers.
Notable quotes
“about the only thing both parties can seem to agree on these days besides spending money without end is hating data centers”
“Greg Abbott, governor of anything goes Texas, basically has brought the construction of 1,800 data centers to a standstill”
“I have some notes here. In some parts of the country, they've jumped more than 25% in a single year”
“seven in 10 Americans now say they don't want a data center near their town, and eight out of 10 Americans fear that a data center near them is going to drive up prices tremendously”
“if you freeze the development of AI, the stock market would crash, but also it would hand China a crazy big lead in the AI race”
How the episode opens
Good morning. This is Dylan Jovineaux behind the markets. Happy Wednesday.
Today's Wednesday, August 26th, and boy oh boy, America is starting to hate data centers. As a matter of fact, about the only thing both parties can seem to agree on these days besides spending money without end is hating data centers. And that was really, really hammered home to me this weekend as I'm reading about Greg Abbott, governor of anything goes Texas, basically has brought the construction of 1,800 data centers to a standstill.
On the Republican side, on the Democratic side, you have Josh Shapiro, the governor of Pennsylvania, has done something very, very similar, really slowed down the development of data centers. And look, they seem now, data centers seem to be as popular as a colonoscopy or in-laws that you don't like these days. They've really, really gotten really unpopular.
And it's not hard to understand why that is, okay? We see electric bills rising, climbing faster than the price of almost anything these days. And I have some notes here.
In some parts of the country, they've jumped more than 25% in a single year. My electric bill here in Florida has jumped. I actually looked at my electric bill the other day and I was like, "When did my electric bill become like one of my top five expenses?
I couldn't believe it. So, yeah, these electric bills are just jumping. It is crazy expensive.
In Georgia, a power company raised rates six times in the past 2 years, and the average family now pays 175 bucks a month for electricity. And look, voters are getting an idea who to blame. They're blaming the giant AI data centers that are popping up all around them.
And I understand why. Look, it's gotten to the point where seven in 10 Americans now say they don't want a data center near their town, and eight out of 10 Americans fear that a data center near them is going to drive up prices tremendously.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- data center backlash
- electricity rates
- ai capex and expansion
- data center moratorium act
- openai chatgpt influence operation
Companies and tickers mentioned
- OpenAI
Watch the episode
Watch “Why Both Parties Suddenly Agree on Hating Data Centers” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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