Trump is surprisingly aligned with Democrats on this issue

Politico

by By Lisa Kashinsky

February 26, 2026

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Trump and Democratic governors are unexpectedly aligning on an issue that has become a political hot potato: regulating data centers. Once seen as economic engines, these facilities are now facing scrutiny due to rising energy costs and public backlash. In his recent State of the Union address, Trump announced plans to require major tech companies to build their own power plants, aiming to lower electricity prices for Americans while addressing concerns about rate hikes tied to data center operations. This pivot reflects a broader shift in political strategy as both parties scramble to respond to voter frustrations over soaring utility bills and tax incentives for these energy-intensive projects. The shift is significant because it marks a departure from previous bipartisan support for the industry. Just six months ago, Trump was lauding data centers for their role in advancing artificial intelligence and infrastructure investment. However, faced with public anger and political pressure, he has now joined Democratic governors in pushing for regulations that would hold tech companies accountable for their energy consumption. Similarly, Democrats have used voter concerns over rising utility costs to win gubernatorial races and influence regulatory decisions. Polls show that a majority of Americans worry about higher electricity bills, increased blackout risks, and taxpayer-funded projects tied to data centers. This issue has become a key political battleground as both parties navigate public frustration over energy prices. Trump’s recent move to negotiate with tech companies over power plant construction is part of a broader effort to position himself as responsive to these concerns. Meanwhile, Democratic governors have been rolling back tax incentives for data center projects and advocating for stricter regulations. The rapid shift in political stance highlights the growing pressure on leaders to address economic anxieties tied to energy costs, particularly as midterm elections approach. The alignment between Trump and Democrats on this issue underscores the power of voter sentiment in shaping policy priorities. Both sides are now positioning themselves as champions of ratepayer protection, even though their approaches

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Originally published on Politico on 2/26/2026