Voters in several US communities have backed measures to restrict data center construction or operations, putting new cost demands on the infrastructure boom behind artificial intelligence. The votes have not erased demand for computing capacity, but they highlight local concerns about electricity prices, water use and who pays when projects are canceled. OpenAI has since pledged to cover power and grid infrastructure costs at campuses it owns and operates, and to provide financial assurances before major spending begins.
Ohio voters back limits in multiple communities
Data center proposals appeared on ballots in about 40 local jurisdictions across the country. As of Wednesday morning, roughly 25 jurisdictions had approved 28 measures opposing data centers, including 18 municipalities in Ohio. The state had already seen 125 measures to pause data center development.
In Sunbury, Ohio, a ban on data centers with capacity above 25 megawatts passed by 79% to 21%. Amazon had proposed a $2 billion campus there. In Trenton, where Amazon Web Services (AWS) is building a 250-megawatt data center, voters approved a ban by 80% to 20%. Hubbard’s ban passed by 76% to 24%; the mayor later said a 300-megawatt project planned for the area had been put on hold.
Not every measure sought a blanket ban. Some targeted project size, tax incentives or approval procedures. In Perry, 87% of voters backed a requirement that hyperscale data center developers seeking tax incentives provide financial guarantees and comply with noise limits. Grove City rejected a ban, but by 55% to 45% required public votes for projects covering more than 50 acres, exceeding 20 megawatts of capacity or using more than 500,000 gallons of water a day.
Those thresholds leave room for smaller server facilities while subjecting large campuses to greater local scrutiny. Electricity bills are a central concern: surveys show that more than 70% of Americans oppose a data center being planned near their homes, with higher power prices cited as the main reason.
Developers face demands beyond tax breaks
Local governments have long used tax incentives to compete for corporate investment, counting on jobs and future revenue. The article notes that US taxpayers have spent $33 billion on sports stadiums. In the contest to land Amazon’s second headquarters, Newark offered $7 billion in tax incentives and New York City offered $3 billion. Amazon ultimately selected Queens, after a competition that saw local governments vie to offer favorable terms.
Data center development has followed a similar bargain: companies bring construction and tax revenue, while local governments provide incentives. The latest votes suggest communities are less willing to accept that trade-off without clearer protections. In January, Microsoft announced its “Community-First AI Infrastructure” plan, pledging to cover its electricity costs, pay property taxes in full without seeking abatements, replenish more water than it uses, and provide free AI training for local schools and community colleges.
A week later, OpenAI said each “Stargate” campus would have a community plan. By this fall, Google, Microsoft, Meta, Oracle, xAI, OpenAI and Amazon had signed a nonbinding White House pledge to build or procure the power needed for their facilities.
OpenAI pledges to pay power and grid costs
On Thursday, OpenAI announced its “National Community Compact.” It said it would pay for the electricity and grid infrastructure required by data center campuses it owns and operates, and provide financial assurances before major spending begins. The safeguards are intended to prevent other utility customers from bearing costs if a project is delayed or canceled. OpenAI said the measures had been in development for months and that some commitments were already in place at its campuses; the announcement was the first time it had formally set out several of them together.
For data center companies, local support depends on more than zoning approval or tax terms. Grid upgrades, water use, noise controls and responsibility for costs if a project is canceled can all affect approval timelines and construction expenses. Companies’ new commitments to cover those costs point to changing terms for winning local support.
Views on data center development do not divide neatly along party lines. Former Ohio gubernatorial candidate Vivek Ramaswamy pledged to pause construction until the state legislature acted. Texas Governor Greg Abbott halted new data center grid connections in August. On Election Day, Arizona Representative Yassamin Ansari called for a pause in advanced AI development, stronger oversight and a ban on artificial superintelligence. Together, these positions reflect growing scrutiny over who bears the costs of expansion.
Restrictions may redirect projects rather than eliminate demand for computing capacity, steering development toward places still willing to host it. Harwood, Ohio, is among the communities that have supported the industry, and Applied Digital has a project under construction nearby. Projects stalled in Sunbury and Hubbard could move to other counties or municipalities, where they would face local approval rules and cost requirements.