The Political Cost of the AI Buildout

The intersection of AI infrastructure expansion and consumer affordability is emerging as a pivotal influence on the upcoming midterm elections. While national electricity inflation remains steady at 4-5%, regional pressures from data center power consumption have triggered significant voter pushback in battleground states like Pennsylvania, Arizona, and Michigan. In Pennsylvania, 71% of surveyed residents express concern over data center energy use, while 55% fear AI-driven job displacement. This public sentiment is driving local policy shifts, with utility commissions in states such as Georgia and Ohio implementing "large load tariffs" to ensure data centers, rather than households, shoulder grid upgrade costs. Consequently, the Trump administration may pivot toward unilateral levers like trade and housing policy to address broader affordability concerns, especially if a pending Supreme Court ruling limits executive authority over reciprocal tariffs. The tension between maintaining American AI leadership and managing rising utility costs will define the political narrative leading into November.