Data Center Industry Plots Charm Offensive After Midterm Drubbing

Roughly $172 million went into political advertising targeting AI data centers during this week's midterms, and — according to Salute CEO Erich Sanchack — "100% of those ads were focused on negative data center positioning." The industry gathered in New York the next day, Nov. 4, to work out what went wrong.

The venue was a swanky Manhattan hotel. The convenor was Salute, a global data center services provider timed to the launch of its 2026 Digital Infrastructure Report. The prescription was blunt: talk more, smile more, and stop hiding behind non-disclosure agreements.

Texas, the biggest data center state, was flagged as the market most likely to take the hit.

What do the numbers actually say?

Salute's report, based on a September survey of 500 U.S. and 500 U.K. industry executives plus 1,000 U.S. consumers, paints a less hostile picture than the campaign ads suggest. Only 41% of Americans would support a new AI data center in their region, but just 27% would oppose one, and a quarter remain undecided.

Framed as competition with China, support rises to 48% and opposition falls to 21%. Seven in 10 Americans said they would be concerned if China became the world's leading AI superpower.

"The demand for AI has been unprecedented," Sanchack said in a corporate video released with the report, adding: "Those that are in front of that race, those that are developing for the AI of the future, will be the ones that will determine how we live in the future."

The operational data is less cheerful. The survey found that 84% of operators felt the impact of community opposition. Six in 10 U.S. operators paid more for consultation, mitigation or legal work over the past year. Nearly half — 49% — had permits or approvals delayed, and 32% had a site relocated or canceled. Only 16% escaped untouched.

Oddly, 76% of U.S. decision makers still rate their trust with local communities as high. That gap is the story.

Who takes the blame?

The public face of the backlash lands mostly on hyperscalers — the polite word for Big Tech names like Google, Amazon Web Services and Meta. Salute positions itself apart: it neither owns nor develops the assets.

"We don't develop, we don't own data centers. We don't want to compete with our customers. We want to be partners for them and their ambitions," Sanchack said. "We actually are the citizens that live in the communities where these data center assets operate."

Executive vice president of federal J. David Britt posed the question directly: "So how can we as Salute — we don't own these assets — how do we have a voice in that conversation?"

Lucas Workman, vice president of economic development and community affairs, said the future "happens through open, honest conversations." Salute leans on its veteran-heavy workforce as part of that pitch.

How rocky is the road in Texas?

Quite rocky. Texas State Rep. Giovanni Capriglione (R), also president of the Digital Infrastructure Network, told the room: "I woke up today, and for the first time in 30 years, Republicans are in the minority. We have a Democrat governor."

Gov.-Elect Gina Hinojosa's victory over Greg Abbott matters more to the industry than James Talarico's Senate win over Ken Paxton. An 88-62 Republican majority became a Democratic one, with at least 76 seats declared for Democrats, 61 for Republicans and 13 races uncalled.

The shift reaches the Texas Commission on Environmental Quality, grid operator ERCOT and the Public Utility Commission. "When you think about how you're going to build this, it's a rocky road," Capriglione said, noting defeated Republicans believed "the data center people didn't help them enough." He did not run for reelection.

What's the fix?

Capriglione blames half-truths — claims about water use, electricity, noise and jobs — that the industry never countered. "It just didn't. And unfortunately, that information started to fester." Town halls that once drew a handful of regulars began drawing 100 or 600 people.

Some damage was self-inflicted. When Texas asked data centers and crypto miners to report water use voluntarily, only about 20% complied. "People start to think that there's something to hide," he said, recalling one company that skipped a legislative hearing and later had its permits pulled by Abbott.

His remedies: an "educational sprint" of "about two or three months" to brief incoming state and federal leaders, plus an enforceable data center code of ethics on water, noise and lighting. "Let's turn this into an actual bill. Let's get it signed."

The economic case remains strong, he argued. In one city outside Austin, a single data center under construction adds $5 billion in taxable value against $1.2 billion for all homes and businesses combined. In some rural counties, homeowners over 50 may stop paying property taxes entirely because of a facility 30 miles away.

His favorite tactic is the site tour. Officials arrive expecting something sinister and leave having taken "the most boring tour that they've ever been on." As he put it: "This is just a building with computers." Whether two months of smiling can undo a $172 million advertising onslaught is the industry's next test.