Data center backlash is panicking tech oligarchs ahead of midterms

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Data center backlash is panicking tech oligarchs ahead of midterms

Midterm elections are typically sleepier than presidential campaign years, so it’s genuinely shocking to see how much money is being unleashed, especially into GOP coffers, by the hyper-wealthy this cycle. Corporate political donations have reached a record of $646 million this cycle, which is 40% above what was spent on the 2024 presidential election from this sector. Another $1 billion — and likely much more — has been spent by dark money donors. While some of this money goes to Democrats, Republicans are by far the bigger beneficiaries, as moneyed interests focus their immense resources on trying to stop what looks very much to be a blue wave election.

The amount of money being thrown around by tech oligarchs is staggering — however, it’s important to remember that this is a sign of weakness.

At first blush, this torrent of spending is a little odd. Donald Trump will still be president for the next two years, making it impossible even for a robust Democratic majority in Congress to raise taxes on the rich, the concern that usually drives such campaign meddling. What’s going on become much clearer looking over the industries driving the spending, at least what can be traced publicly: over half of the corporate spending comes from the tech industry, specifically companies that invest in AI, cryptocurrency and online gambling. The pattern suggests that Silicon Valley is focused on destroying the burgeoning movement for tech accountability, before it has a chance to grow enough in power to actually pass laws constraining the industry once a Democrat retakes the White House.

Blame data centers. These giant computer campuses, which

Blame data centers. These giant computer campuses, which are mostly void of human beings, have become a focal point of the growing revolt against an increasingly predatory tech industry. Voters from across the political spectrum hate data centers, which consume land, water and electricity while giving little to nothing back to the community. It’s a perfect symbol of Silicon Valley’s turn to vampiric capitalism, which is no longer about building a better future, but instead maximizing how quickly they can suck the public dry of its wealth and resources. The more voters learn about data centers, the more they oppose them. In March, a Gallup poll even found that 71% of Americans oppose data centers in their community, more than they oppose a local nuclear power plant.

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Because data centers are a local and state issue, citizens are finding they have real leverage in protesting their construction. Both Democratic and Republican politicians who had previously been supportive of data centers are now scrambling to oppose them, or at least create the appearance of opposition. Democrats have been swifter to respond to public outrage, leading Pennsylvania Gov. Josh Shapiro and New York Gov. Kathy Hochul to put up strict roadblocks to construction. But even Republican Gov. Greg Abbott of Texas is trying to slow things down a bit.

Of course, once voters realize they have power

Of course, once voters realize they have power to stop data centers, they’re more likely to realize they can also petition their government to do more — like restrict other predatory online industries such as crypto and so-called “prediction market” apps. In response, tech executives are clearly realizing that city councils and state legislatures can do a lot to constrain them. One reason the campaign spending this cycle is so out of control is that rich donors are spreading the money around, trying to buy influence over races they would have ignored in the past.

The amount of money being thrown around by tech oligarchs is staggering — however, it’s important to remember that this is a sign of weakness. They’re spending ungodly amounts of money because they’re that afraid of the power of everyday people who oppose them. Their panic is a sign that, no matter how hard Trump and his financial backers have tried to destroy democracy, it’s still alive enough to create a real threat to Silicon Valley’s power, as evidenced by the initial gains of anti-data center activists.

Tesla CEO Elon Musk is reportedly spending $200 million to boost Republicans, especially in Texas, where the data center construction has become a huge political battleground. Marc Andreessen and Ben Horowitz, the billionaire founders of the tech investment firm Andreessen Horowitz, have already donated over $115 million, mostly to Republicans, including $12 million to Trump’s super PAC MAGA Inc. Jeff Yass, a billionaire who has heavily invested in AI, has spent almost $94 million, mostly on Republicans, with an eye towards protecting data centers. Greg and Anna Brockman, founders of OpenAI, have donated $50 million, including $25 million to MAGA Inc.

This is just the spending that is publicly

This is just the spending that is publicly traceable. Tech investors are likely a major force driving dark money spending this election cycle as well.

Focusing the money on Republicans makes sense. While some Democrats have been open to playing all with anti-regulation tech donors, they are facing growing resistance from inside the party that is turning those donations into a poison pill, more likely to hurt than harm a candidate. Republicans have always been an anti-regulation party devoted to serving the rich at the expense of everyone else, making them a natural fit for Silicon Valley donors.

The lavish spending is certainly paying off in the GOP ranks. Sen. Ted Cruz, R-Tex., recently denounced the anti-data center movement as driven by “hardcore left-wing values.” On Monday, Vice President JD Vance dismissed the opposition to data centers as an easily resolved dispute over power usage, and insisted “they’re an important part of the AI economy.” (That’s why people hate them, JD!) Trump, with his usual contempt for voters, sneered that opponents of data centers will be “backwards and poor,” saying that those who want to be “successful and rich” will “let Data Reign.”

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Trump is heavily invested in crypto schemes

Trump is heavily invested in crypto schemes that have enriched him while other investors lost money, and likely knows it’s false that this latest round of scammy tech products will enrich anyone but an elite few. He’s just employing the classic false promises of any grifter running a get-rich-quick scheme. But this time, it seems like even some Trump voters aren’t buying it. At least, that’s how other Republican politicians seem to feel. Most of them are scrambling to get on the right side of this issue, and, publicly at least, are speaking negatively about data centers.

Thus, the tech industry’s spending. The tech elite are likely hoping that they can convince Republican politicians to betray their own voters and focus their favors on the donor class once in office. But the size of the spending betrays how worried they are about people power. They clearly think it will take a lot of money to drown out the increasingly loud voices of everyday voters who see clearly that the tech industry is predatory, and are demanding that government do something about it. This midterm will be a test of who can be louder: people or money. So far, the people have the momentum.