Abundance Democrats Have a Data Center Problem

The “Abundance Democrats” movement, organized as an alternative to anti-market, left-wing populism, wanted to start building again. It now appears to be facing major headwinds from anti-data center sentiment. Pennsylvania Gov. Josh Shapiro—often hailed as one of the abundance movement’s informal leaders—often highlighted the need for his state to take steps to boost economic development.  He saw the need to clear away burdensome red tape that undermined new innovation and job opportunities. But in August, Shapiro signed an Executive Order implementing some of the strictest standards in the nation for AI data centers. Unfortunately, many in the abundance movement risk giving up a future of growth over short-term, inflated concerns.

Shapiro’s measure would tie down companies in permitting hell, make them ineligible for competitive fast tracking, and create uncertainty with ever-changing approval guidelines. In contrast, U.S. Senator John Fetterman of Pennsylvania responded to previous calls for data center moratoriums by saying, “America must lead in the development of AI, otherwise we live under China’s rules.” Earlier this year he likewise argued that, “[a] moratorium is China First.”

Fetterman is right. While America is slowing data center construction state by state, China is racing to build more data centers as it seeks to “turbocharge” its AI buildout.

Shapiro, among others, appears to understand the importance and value of data centers. Just about a year ago, he was praising the evident benefits of data center investments in Pennsylvania and cheering on more of them. Now, with shifting polls, he is championing some of the most stringent policies surrounding data centers in the country. But while polling may have changed, these benefits haven’t vanished, and the advantages of new data centers for communities remain immense.

He also showcased his work securing AI-related investments in Pennsylvania and their benefits to residents. Last year, while proudly announcing major new AI-related investments in the state—including $20 billion from Amazon for major data center projects—Shapiro boasted of how his administration was “creating thousands of good-paying jobs, generating new revenue for our local communities, and making it easier for companies to build and grow in Pennsylvania.” He said it was about “ensuring the future of AI and innovation runs right through the Commonwealth.” And in June 2025, he touted his record of helping secure local support for “more data centers.”

Shapiro’s about-face is a disservice to voters. It is no secret that data centers are currently unpopular among much of the electorate, but popularity swings all the time and for varying reasons. Sure, there are certainly legitimate community questions surrounding the construction of new data centers that companies should be prepared to answer. However, much of the anti-data center fervor is being fed by misinformation and misunderstanding—with debunked claims swirling on social media ranging from water pollution to widely inflated claims about energy use. Affirming this rising techno-panic is not the way forward.

Loudoun County, Virginia, proclaimed by its own leadership as the “Data Center Capital of the World,” is the county with the highest concentration of data centers in the United States. There, data centers generate nearly half of the county’s property tax revenue. This has enabled Loudoun County to charge some of the lowest property tax rates in Northern Virginia while simultaneously delivering some of the region’s most coveted public services like strengthened schools, improved public safety, and better libraries. And in a recent CNN article titled “Brand-new everything: How data centers transformed this small town’s economy,” the author describes how in Quincy, Washington, 30 data center facilities “shoulder an estimated 57% of local property taxes,” funding a new $120 million high school, among other valuable public benefits.

Moreover, state bans and restrictions on data center development have broader consequences for the nation and our race for global leadership in AI and advanced computation. Data centers are the necessary engines of AI-powered innovation and the surrounding economy, and are poised to transform things like how we treat disease, forecast dangerous weather, and catch wildfires early.

As elections approach this fall, we’ll likely see more sensible politicians cave to the pressure to “do something” about data centers. Rather than embracing the Loudoun model, many state leaders across the country are instead considering heavy-handed data center restrictions. And in July, Gov. Kathy Hochul (D-N.Y.) signed the nation’s first statewide one-year ban on new large data center projects via an executive order.

Shapiro could have used this as a chance to boost Pennsylvania’s economic advantages over New York, much as the state did following New York’s move to ban fracking a decade ago. After all, Shapiro himself has trumpeted the benefits of permitting reform. Just about a month ago, he issued a statement about what his Administration was doing to spur economic growth and address the costs of the Commonwealth’s permitting process. “The number one thing I heard over and over and over again was speed,” he said after consulting with elected officials, businesses, and labor leaders. “We were just too slow. We completely reformed our permitting process, and now we’re a national model for speed.”

That move produced enormous benefits for Pennsylvania, including faster construction reviews, backlogs being cleared, and yes, more data center investment. Tying up companies that want to invest in the commonwealth with new and uncertain permitting red tape is directly contrary to this agenda. If America is to fully realize the full potential of benefits growing compute capacity is poised to offer, politicians must both promote the advantages and stop following what polling says about public sentiment at a frozen point in time. The passions of the moment must not dictate the growth of the future. Unfortunately, America is in desperate need of politicians making the case for building that future.