DigitalToday reporter Chi-gyu Hwang (황치규) wrote that business and politics are moving in different directions over data centres, Axios reported on Aug. 21.

The report said the data centre business is booming. Share prices of both listed and unlisted companies are rising. It said not only operators of actual projects but also related energy companies and equipment makers are benefiting.

Political reaction, however, is becoming increasingly negative. Opposition voices are growing regardless of party. New York state has halted large new data centre projects for a certain period.

Pennsylvania and Texas are also slowing the pace of development by introducing new regulatory hurdles. In dozens of other states, regulatory proposals are also being rolled out one after another, including moratoriums or bans.

Data centre investors often see the backlash as an issue that can be addressed by educating local residents. There is also an expectation that much of the political backlash will subside after the midterm elections. They also say that even if the backlash hardens, there are still many states where new projects can be built or existing facilities expanded.

A Wall Street executive said capital moves with decades of demand in mind, but politics looks only to the next election. That is why capital and politics move at different speeds, the executive said.

There is also a possibility that regional conflicts could spread into a national issue. If Pennsylvania Governor Josh Shapiro runs for president, he could be placed in a situation where he must argue that policies that help Pennsylvania also help Americans in other regions. Permitting and site selection are mostly handled by local or state governments, but the federal government also has various means to slow the industry's pace.

Critics also say Wall Street and Silicon Valley do not represent all voters. Analysts also say the argument that the United States cannot fall behind China in the AI race does not strongly resonate with ordinary voters as electricity bills rise.