Opposition to land-based data centers in the United States has intensified across party lines, creating a growing political and permitting challenge for the AI infrastructure sector ahead of the November midterms. A recent note from Evercore ISI highlights that 75% of Americans now oppose local data center construction, up from 42% a year earlier, while Texas has paused roughly 1,800 projects pending state audits. Pennsylvania has also withheld permits until developers secure full local approvals, underscoring a broader regulatory headwind.
The political pressure is no longer confined to environmental or NIMBY concerns. Evercore warns that both major parties are expected to amplify criticism of data center siting through the election cycle, potentially exposing the entire AI ecosystem to negative headlines. Analyst Kutgun Mural cautioned that the issue could dominate discourse into November 3, with potential spillover effects on related stocks.
SpaceX’s Starlink unit is positioning orbital computing as a potential alternative, leveraging its satellite infrastructure to bypass terrestrial constraints. Evercore estimates that if orbital compute becomes viable by 2029, it could eliminate the need for additional land-based capacity while avoiding the permitting, emissions, and environmental-justice disputes plaguing projects such as those in Southaven. The firm suggests orbital solutions could offer cost and speed-to-market advantages over traditional data centers.
The terrestrial model faces persistent hurdles despite efforts to mitigate local impact. SpaceX has proposed funding grid upgrades to shield households from higher power costs, yet projects still encounter opposition tied to emissions, land use, and equity concerns. Orbital compute, by contrast, operates outside these frameworks, offering a potential escape from the political and regulatory gridlock currently stalling AI infrastructure expansion.
