The Data Center Backlash is Here — and Big Tech is Spending Big to Combat it

The public has turned against data centers, prompting a flood of legislation in California. Business interests are trying to blunt the backlash.

By Katherine Ortiz and Khari Johnson, Cal Matters

Companies backing data center construction are flooding Sacramento with cash, hoping to stop or defang seven bills that would regulate the facilities as they head toward approval in the California Legislature this week.

The pro-data-center spenders include Big Tech companies like Amazon and AI titan Anthropic. But they are led, dollar-wise, by old school utility giant Pacific Gas & Electric, which earlier this year clocked its second biggest lobbying quarter since 1999.

The financial push comes a year after four bills that attempted to regulate data centers died or were diluted after lobbying from the industry. But as artificial intelligence fuels an unprecedented facility buildout, public backlash is transforming data center construction into a major issue for candidates in upcoming elections.

A May Gallup poll found seven in 10 Americans oppose data center construction in their communities, while a Public Policy Institute of California poll in July found similar opposition statewide. Rising public anxiety over utility costs, water use, and grid strain has driven California lawmakers to propose strict new data center rules — igniting a high-stakes lobbying push by the industry.

Hundreds of cities have considered or passed project bans this year, including in Monterey Park, where voters passed a ballot measure to permanently ban data centers, and Bay Area cities like Pittsburg, which backtracked on approvals following public outcry.