Tech watchdog urges Democrats to target GOP on data center costs

The Tech Oversight Project is urging Democrats to leverage concerns over data center costs as a campaign message against Republican candidates in the lead-up to the midterm elections. In a memo released Monday, the watchdog group argued that the expansion of data centers, which are crucial for the AI boom, is contributing to higher household bills for Americans while major technology companies benefit from substantial tax breaks and subsidies.

Sacha Haworth, founder and executive director of the Tech Oversight Project, stated that "Across the country, Big Tech companies have claimed billions in federal and state subsidies to build their deeply unpopular data centers – and left taxpayers holding the bill." The memo highlights that data centers have become a contentious issue in the midterms, with public wariness growing over the rapid construction of these facilities.

The group pointed out that Republicans are aware of the negative sentiment surrounding data centers, citing Senator Jon Husted (R-Ohio) as an example. The National Republican Senatorial Committee (NRSC) reportedly described data centers as "the anchor hanging around Husted’s neck." Democrats are increasingly using the issue to frame their GOP opponents as being too close to Big Tech and contributing to the cost-of-living crisis.