Bipartisan political scrutiny threatens U.S. data center expansion

Jefferies’ Washington Strategy team published a note analyzing how growing political opposition to data center expansion could translate into policy action.

• Main announcement/analysis: Jefferies outlines bipartisan scrutiny of data center growth (including the Trump Administration, Senator Bernie Sanders, and Senator Richard Blumenthal) and reports that six states have proposed some form of data center moratorium with several measures extending through late 2029; Microsoft has launched a “Community-First AI Infrastructure” plan and pledged to cover incremental electricity costs for consumers in areas where Microsoft is building data centers.
• Background and policy levers: The note catalogs potential policy responses including federal permitting/energy dominance changes (e.g., easing Bureau of Land Management permitting), cost allocation moves like Ohio’s rule to require large power users to cover 85 percent of capacity costs, state tax incentive reform, expanded consumer energy support or electricity price caps, DOE asking FERC to develop grid connection rules, and the pending Prince William Digital Gateway court hearing scheduled for February 23–24. This is an analytical note referencing existing announcements and policy proposals rather than a single new government policy announcement.