The Wells Fargo analysis attributes the local backlash primarily to electricity costs, grid capacity, water use, and the impact of large industrial developments on surrounding communities, according to the report. Pourreza compared the organized resistance to data centers to the opposition that materialized around natural-gas infrastructure projects. The report identified Michigan, Ohio, North Carolina, Iowa, and Tennessee as the states with the most local moratoriums, according to ZeroHedge.
Midterm Politics Place Data Centers at Center of Election Debate
With midterm elections roughly 55 days away, the data center buildout has become a major political issue, according to ZeroHedge. Rep. Alexandria Ocasio-Cortez, D-N.Y., and Sen. Bernie Sanders, I-Vt., have proposed a nationwide moratorium on new data center buildouts. President Trump has promoted data centers as sources of jobs and economic growth, writing on Truth Social that the only reason communities should not want data centers is if they want to end up being backward and poor, according to the report. “If they want to be successful and rich, with far lower taxes and jobs all over the place, let Data Reign,” Trump stated. [1]
Vice President JD Vance has acknowledged the backlash, attributing community concerns to higher power bills, according to ZeroHedge. The political divide on the issue is not strictly partisan, as U.S. Sen. John Fetterman, D-Pa., has backed Trump's support of the industry, according to reports. [3] The debate has intensified as a Gallup poll conducted in March found that seven in 10 Americans oppose having data centers in their local area. [2]
Cancellations and Delays Mount as Pushback Spreads
The financial impact of community opposition is substantial, according to a mid-July report from Morgan Stanley cited by ZeroHedge. The report estimated that $156 billion of data center projects were canceled or delayed in 2025, and $130 billion in the first quarter of 2026. “Community pushback against data center construction has accelerated in 2026 as new moratoriums have been introduced, with the majority of the change happening at the local level,” the Morgan Stanley report stated. “This puts pressure on costs and timelines and could alter the geographic distribution of data centers.” [1]
The report indicated that sustained data center pushback could extend the cycle and reduce future supply by lowering capital expenditure and financing needs. [1] The acceleration of cancellations and delays follows a period of rapid expansion, with data centers currently consuming about 4.4 percent of total U.S. electricity, a figure projected to reach 12 percent by 2030, according to industry estimates cited by the White House. [6]
State-Level Actions and Electoral Rhetoric Increase
Pourreza noted that state-level policy actions have increased, including a Texas audit, Pennsylvania grid measures and executive orders, alongside election rhetoric in seven states, according to the report. [1] The analyst identified independent power producers and utilities—including CEG, NRG, AEP, DTE and others—as most exposed to state-level political rhetoric risk. The report stated that the majority of the change in the regulatory environment is happening at the local level. [1]
State-level actions include Texas Gov. Greg Abbott's directive for the Public Utility Commission and the Electric Reliability Council of Texas to audit data center proposals and require them to fully fund the costs of electric infrastructure, according to reports. [4] The Texas move followed New York, which in July halted new data center approvals for up to a year. [5]
Duration of Moratoriums and Execution Risk to AI Buildout
Active moratoriums average roughly 346 days, while the average across all tracked measures increased to 311 days from 277, according to Pourreza. [1] Some moratoriums extend as long as five years, and the report states that even temporary pauses can delay projects enough to push developers toward other states. The report compared the organized opposition to the resistance that materialized around natural-gas infrastructure. [1]
The duration of these pauses poses execution risk for the AI trade, as local opposition and infrastructure constraints delay projects, according to analysts. A Democratic sweep in the midterms could increase investor concerns about nationwide restrictions, though passage of any federal moratorium would remain uncertain. [1]
Outlook: Analysts Expect Pressure to Moderate Post-Election
Pourreza said he expects the noise to quiet after November as the election winds down, with economic development and national security interests prevailing. [1] The analyst stated that state involvement after the election could be constructive by giving local officials more comfort, and that responsible hyperscaler projects that do not shift costs and deliver meaningful community benefits will likely proceed. “The unregulated era is over, but load-growth is not,” Pourreza stated. [1]
The report noted that the market will always allow responsible hyperscaler projects, but the current pressure is largely optical and election-driven. [1] If enacted, a broad construction moratorium could reprice stocks linked to the AI buildout, according to the report. [1]
References
- ZeroHedge. "Data Center Revolt Accelerates Ahead Of Midterms As Wells Fargo Warns Of Fourfold Jump In Active Moratoriums". September 9, 2026.
- NaturalNews.com. "Trump Doubles Down on Data Centers Despite Polls Showing Public Opposition". September 1, 2026.
- Just the News. "Pennsylvania Sen. Fetterman backs Trump's support of data centers". September 1, 2026.
- LifeSiteNews. "Trump says Texas making 'mistake' with AI data center moratorium". August 11, 2026.
- Utility Dive. "Facing an estimated 474 GW of interconnection requests, Texas hits pause on data centers". August 5, 2026.
- NaturalNews.com. "Trump Expands Consumer Protections as Data Center Energy Demand Sparks Ratepayer Concerns". July 28, 2026.
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