The Great Bipartisan Data Center Smackdown Has Begun

Dow Jones
08/19

Good morning. Pennsylvania Gov. Josh Shapiro signed an executive order Tuesday that would essentially give the state the ability to block new data centers.

That same day, nearly 1,700 miles away in Austin, Texas, GOP Gov. Greg Abbott announced that several companies had agreed to new data center water, electricity and quality-of-life standards that he put in place. He said another company, which had refused to commit to his standards, had abandoned its project.

Abbott and Shapiro, a Democrat and potential 2028 presidential candidate, don't align on too many policies. But they are tapping in to voter angst about data-center development that has scrambled politics in America. This is a backlash against Big Tech that few saw coming 18 months ago, when a number of CEOs stood behind President Trump at his inauguration.

Both governors had previously embraced data centers but are under attack from opponents in their re-election campaigns.

Data centers are a core part of artificial-intelligence development, which is attracting an enormous amount of investment but also fueling angst about job losses, environmental risks and widespread cyberattacks.

A May Gallup poll found that seven in 10 Americans oppose the construction of data centers for artificial intelligence in their areas, with 48% "strongly opposed."

Versions of this story are playing out across the country. Debates over whether to build data centers (and create jobs) are dividing rural communities. This is likely a societal and political fight that will continue for years, but it's clear that the money and development of these data centers got ahead of local communities' comfort with them. And one thing politicians from both parties are good at: looking at polling and realizing when they are on one side of a fence and voters are on the other.

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People and Policies I'm Watching

Fed Minutes: Minutes of the Fed's July 28-29 policy meeting will be released at 2 p.m. ET.

Trump's Wednesday: The president is scheduled to hold policy meetings throughout the day. He is to deliver remarks and meet with crypto executives at the White House at 2:30 p.m.

What I'm Following

Trump pushes aides to arrange summit with Kim Jong Un. The president is pushing for a meeting, possibly during the Asia-Pacific Economic Cooperation in Shenzhen, China, in November. Trump is seeking to revive a diplomatic quest from his first term to convince Kim to abandon his country's nuclear-weapons program. Earlier this week, Trump scaled back military exercises with Seoul, citing his strong relationship with the North Korean leader.

Trump ally Byron Donalds wins the Florida GOP gubernatorial primary. Donalds cruised to victory in the Republican contest in Florida to succeed Gov. Ron DeSantis. A Democratic socialist, state Rep. Angie Nixon, scored an upset win in the Democrats' Senate primary in Florida. Scandal-plagued Rep. Cory Mills was defeated by Ryan Elijah in a key House race.

Natalie Harp, one of Trump's closest aides, is in the spotlight. But who is she? She rarely speaks publicly, and she is an omnipresent figure at Trump's side, standing just off camera during Oval Office events. She travels with the president around the country and the world, tapping out his social-media posts. Now the 35-year-old has become an object of fascination for both the left and the right.

What Else Is Happening

Sexual misconduct cases piled up in several competitive House midterm races.

The U.S. Forest Service is aiming to open more than 44 million acres of national-forest land to logging and road construction.

Disney's ABC sues the FCC over a challenge to its broadcast licenses.

Trump said he would pause a 50% tariff on certain goods from Canada.

Trump selected Dr. Heidi Overton, a White House health aide, to lead the Food and Drug Administration.

What I'm Reading

DOJ Plans to Send 1,000 Poll Monitors to Watch Midterm Elections (Washington Examiner)

House Speaker Mike Johnson Calls Paul LePage 'One of the Most Qualified' House Candidates in History (Portland Press Herald)

Trump Is Putting His Face On Everything (The Atlantic)

About Me

I'm Damian Paletta, The Wall Street Journal's Washington coverage chief. I've covered Washington for 22 years as a reporter and editor. I've covered the White House, Congress, national security, the federal budget, economics and multiple market meltdowns. WSJ Politics brings you an expert guide to what's driving D.C., every weekday morning. Send your feedback to politics@wsj.com (if you're reading this in your inbox, you can just hit reply). This edition was curated and edited in collaboration with Alistair Dawber and Mali Michelle Fleming. Got a tip for us? Here's how to submit.

 

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