"But the explosion of generative AI, and its massive computing needs, has turned what were once modest server farms into sprawling mega-complexes that can take up many millions of square feet, draw enough electricity to power a medium-sized city, and consume millions of gallons of water. Now AI data centers have suddenly become one of the most potent political flashpoints of 2025, igniting fierce debates over power, water, land, and jobs."
"Those debates are coming to a head this fall in Virginia and New Jersey-the only states holding gubernatorial elections this year. The two races offer early test cases for how the politics of AI infrastructure could shape campaigns nationwide in 2026 and beyond. At issue are tax incentives and infrastructure costs states are offering to attract hyperscale AI data centers; mounting concerns about electricity and water use; the limited local jobs such projects deliver compared with their enormous resource demands;"
Generative AI's growth has transformed modest server farms into sprawling mega-complexes that consume enormous electricity and water and occupy millions of square feet. These AI data centers have become major political flashpoints in 2025 as communities debate power, water, land use, tax incentives, and local job impacts. Virginia and New Jersey gubernatorial races are early tests of how data center policy will influence state politics, focusing on subsidies, grid upgrades, and resource strain. Critics point to higher utility bills, strained water supplies, and limited local employment. Supporters emphasize economic growth and tax revenue for struggling communities. Big Tech influence and two-party competition shape policy choices.
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