Trump and lawmakers clash over data centers, AI race and water use

Democratic lawmakers are calling for tighter restrictions on data centers, while Republicans say the facilities could boost the economy and keep the U.S. ahead in the artificial intelligence (AI) race.

President Donald Trump doubled down on data centers this week, rejecting calls to slow development after previously warning that communities blocking the facilities would “end up being backwards and poor.”

Rep. Yassamin Ansari, D-Ariz., told Fox News Digital last month that Arizona needs to slow the expansion of data centers until the state fully assesses its long-term impacts.

“We in Arizona need to pause the expansion of data centers in the state until we really figure out a plan on how we’re going to preserve our water, how we are going to make sure that ratepayers aren’t taking on the responsibility,” Ansari said.

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President Donald Trump arrives to speak during the first day of the Republican Midterm Convention at the American Airlines Center in Dallas, Texas, on Wednesday, Sept. 9, 2026. (Bloomberg)

Ansari called President Trump’s support for data centers “out of touch,” saying it runs counter to what the “vast majority” of Americans want.

“If Donald Trump is such a big fan of data centers, then he should welcome them in his own backyard,” she said.

Rep. Ro Khanna, D-Calif., pointed to his proposed Data Center Bill of Rights, which would ban data centers within 2,500 feet of homes, schools, child care facilities, hospitals and nursing homes and give communities greater authority over where they’re built.

Khanna dismissed President Donald Trump’s comments that communities opposing data centers would fall behind.

“Trump has failed to deliver for the forgotten American, so he’s just grasping at straws,” he said.

Rep. Jonathan Jackson, D-Ill., said lawmakers must prioritize what’s “fair” for local communities.

“The wealth has gone into the tech sector, and they are unregulated, unbridled and not very philanthropic,” Jackson said.

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Protestors hold up ‘Stop data centers’ signs, on the day of U.S. President Donald Trump’s speech at the General Motors Proving Ground, in Milford, Michigan, U.S. July 27, 2026. (Carlos Osorio/Reuters)

Higher electricity bills shouldn’t fall on communities as data centers expand, according to Rep. Haley Stevens, D-Mich.

“It baffles me that we are just not guaranteeing, for average ratepayers, low utility bills,” she said. “These data centers could play a role in that.”

Republican lawmakers were split on data centers, with some saying they can boost economies and others stressing local control.

Rep. Nancy Mace, R-S.C., backed AI investment to compete with China but opposed building data centers in residential neighborhoods.

“We’ve got to stay ahead of China with AI, and data centers are a part of that,” Mace said. “But you don’t put them in somebody’s backyard and that’s the whole point.”

Praising data centers, Rep. Rich McCormick, R-Ga., said they can generate tax revenue, improve local infrastructure and support energy production.

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The Austin Energy/Sand Hill Energy Center is seen in Austin, Texas, on July 28, 2026. (Brandon Bell/Getty Images)

“You should be fighting over them,” McCormick said. “But, I mean, if you don’t want one, that’s up to you. I think you’re missing out.”

Rep. Ralph Norman, R-S.C., said decisions about data centers should be left to states and local communities.

“I believe in 10th Amendment rights, state rights,” Norman said. “Let each community take ownership, and they’ll make the right decisions.”

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As several states raise concerns over electricity costs, water use and development, the debate highlights growing divisions over where data centers belong in local communities.