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Elon Musk’s record election bet backfired. The backlash may reach beyond one billionaire
Technology companies and wealthy investors spent heavily in the 2026 election to influence AI regulation and support data centre expansion, but public resistance proved difficult to overcome. The results suggest political opposition to data centres could threaten the industry’s plans, as communities weigh the projects’ costs and impacts.
OpenAI President Greg Brockman and his wife gave $25 million to an AI-policy political group, while Andreessen Horowitz contributed $50 million. Data centre advertising reached $173 million nationwide, nearly all negative; voters considered 41 local measures, and at least 10 communities approved bans or restrictions. JPMorgan Asset Management estimates AI infrastructure could cost about $5 trillion through 2030, including $2 trillion in investment-grade debt, with delays and rising costs putting expected returns at risk.
In short
- Tech interests spent heavily to shape AI and data centre policy.
- Data centre ads drew $173 million, mostly negative.
- At least 10 communities approved restrictions or bans.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Supporters of data centre expansion argue that AI infrastructure can drive innovation, productivity and economic growth, and that large investments are needed to build capacity for future demand. They may see national political spending as a way to explain the benefits and shape workable rules, while warning that local restrictions could delay projects, raise costs and weaken expected returns.
The case against
Opponents argue that communities should have a meaningful say over projects that can bring substantial local costs and impacts, and that voters’ support for restrictions shows those concerns deserve weight. They may also question whether projected economic benefits justify the scale of investment, particularly when the industry’s political spending and the risks of delays could leave communities bearing costs without assured returns.
Explained simply
Data centres are large facilities that house the computers and equipment behind online services and artificial intelligence. They need substantial amounts of electricity and water, and can affect local land use, infrastructure and household costs.
Technology firms and investors have backed political efforts to shape rules for artificial intelligence and make it easier to build data centres. Among those involved are OpenAI president Greg Brockman, his wife and venture-capital firm Andreessen Horowitz; local communities and voters also have a say through planning decisions and ballot measures.
The planned expansion depends on large amounts of investment, including borrowing, and investors expect future returns from the facilities. Restrictions or delays can raise costs and affect those expectations, while communities weigh the projects’ local effects.