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Democratic 2028 Hopefuls Pull Back on AI Data Centers

Rising power bills tied to data hubs are pushing governors to swap tax breaks for tighter rules.

Overview

  • Illinois Gov. J.B. Pritzker proposed a two-year pause on state tax incentives for data centers in his State of the State address.
  • Pennsylvania Gov. Josh Shapiro, who last year touted Amazon’s $20 billion plan, is now calling for additional oversight and says residents’ concerns are valid.
  • Maryland Gov. Wes Moore shifted course by unveiling new guidelines that facilities must meet to secure his support after previously smoothing their path.
  • Kentucky Gov. Andy Beshear outlined a model now echoing across Democrats’ playbooks: developers should cover all power costs, pay fair taxes, and win local acceptance.
  • National Democrats are sketching broader responses to AI anxiety, with Pete Buttigieg urging a “new social contract” and Rep. Ro Khanna laying out principles focused on protections against displacement.