A sweeping political and public backlash against data center expansion is gaining momentum on both sides of the Atlantic, fed by disputed job projections, rising electricity costs, and growing voter resistance ahead of key elections.

In Britain, a new report from U.K. think tank Verdant challenged the employment figures driving the country’s digital expansion. The study estimates that planned data center facilities will yield roughly a quarter of the permanent operational jobs projected by tech industry group techUK.

Verdant calculates that existing U.K. facilities account for approximately 4,400 direct jobs—far below the 24,300 claimed by techUK. Looking at 2035, the think tank forecasts 10,400 operational positions at planned sites, compared to industry projections of 40,200. The divergence stems from industry reliance on an outdated formula of 8.5 jobs per megawatt of processing capacity. Based on planning filings for 20 pipeline facilities, Verdant estimates a capacity-weighted figure of just 1.2 jobs per megawatt, noting that increased automation and non-resident contractors counts inflate industry estimates.

Highlighting energy efficiency, Verdant observed that data centers support vastly fewer jobs per megawatt than traditional industries like steelworks, car manufacturing, or public services such as hospitals and schools. The group called for a temporary pause on new construction until national frameworks addressing energy and water access are established.

Industry and government officials pushed back against the report. In statements to CNBC, techUK defended its data as a transparent and reasonable estimate of broader economic contributions, while a U.K. government spokesperson termed Verdant’s metric “deeply misleading,” noting that the report overlooks the national security necessity of critical digital infrastructure.

“Both sides are arguing about the wrong number. Permanent headcount was never the case for building a data center, and disputing the jobs-per-megawatt math does not answer what voters are asking, which is who pays for the power,” said Mitch Ashley, vice president and practice lead for Software Lifecycle Engineering and AI-Native Software Engineering at The Futurum Group. “That turns sitting into a political variable. A project delayed by a county board costs the same as one delayed by a supply chain, so enterprises planning AI capacity should be asking providers where it lands and what the local rate exposure is.”

Meanwhile, in the United States, growing public pushback is reshaping state and national politics. U.S. electricity costs have surged more than 35% over the past five years, with data center demand driving nationwide wholesale prices up by 2% to 6% and pushing 2025 national electricity consumption to a record high. In response, state lawmakers are pulling back tax incentives previously used to attract tech giants like Amazon.com Inc., Meta Platforms Inc., and Google.

“Data centers are necessary infrastructure for AI, but that does not make them free,” said Stephanie Walter, practice leader for AI Stack & Enterprise Application Development at HyperFRAME Research. “They use land, power, and other resources in real communities. If companies are asking those communities to support data centers, they need to be clear and honest about the jobs and economic benefits being created, as well as the potential effects on air quality, noise, water availability, grid reliability, and public health.”

“The disagreement over employment estimates reinforces the need for greater accountability. Companies should publish clear data on resource use, emissions, employment, community investment, and health and safety risks,” Walter said. “We need to think through the ramifications of AI infrastructure before it is built, including who receives the benefits and who absorb the risks. Public resistance will grow if people feel AI is being built around them rather than with them.”

Public resistance has crossed party lines. A March Gallup poll revealed that roughly 70% of Americans oppose local data center construction, with nearly half expressing strong opposition. According to Wolfe Research, net support for local facilities plummeted by 60% over the past year.

The controversy has sparked significant friction within the Republican Party ahead of upcoming midterm elections.

An internal memo from the National Republican Senatorial Committee (NRSC) warned that anti-data-center sentiment in Ohio has left Republican Sen. Jon Husted in a tight race with Democratic challenger Sherrod Brown for the Senate seat vacated by Vice President JD Vance. In recent weeks, Texas Gov. Greg Abbott and Pennsylvania Gov. Josh Shapiro have both taken steps to pause or restrict local developments.

Federal leadership remains divided on the issue.

President Donald Trump warned on Truth Social that opposing data centers risks leaving the nation “backwards and poor” while ceding AI dominance to China. Conversely, Vance cautioned that rising utility bills remain the core public grievance, stating that developers should generate power for the grid rather than drain it.