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Trump sends Marines to Los Angeles amid escalating immigrant protests

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As the uprising against immigrant detentions intensifies in Los Angeles, California, demonstrations have also begun in other states.

On Friday and Saturday (June 6-7), federal officers from Immigration and Customs Enforcement (ICE) began raiding streets and workplaces across Los Angeles, arresting and preparing to deport undocumented immigrants.

A major raid was conducted at Ambiance Apparel in the Fashion District, and violent clashes involving tear gas and stun grenades occurred between protesters and ICE agents in Paramount, a city southeast of Los Angeles.

Increased law enforcement pressure in the immigrant city of Los Angeles

According to New Yorker reporter E. Tammy Kim, some immigrants who arrived at the federal courthouse in Little Tokyo for registration were taken to the basement and then transported in vans to unknown locations.

The Department of Homeland Security confirmed that a nine-year-old elementary school student from Torrance, who was detained after a hearing at the end of May and transferred to a prison in a rural area of Texas, will be deported.

While lawyers were denied access to detainees, it was alleged that workers were being detained “based on their racial appearance.”

One-third of Los Angeles residents were born outside the US, and more than half speak a language other than English at home. Los Angeles is a “sanctuary city” located in a “sanctuary state,” which prohibits local authorities from cooperating with federal immigration officials.

Consequently, when the recent detentions, described by immigrant advocates as “kidnappings” or “disappearances,” spread via text messages and social media, thousands gathered to oppose the activities of federal law enforcement officers from various agencies.

This is how the first clashes between protesters who blocked the freeway and law enforcement began. Police responded with drones, batons, tear gas, and plastic bullets.

Fate of immigrants detained in raids unknown

The families of workers detained in the raid at the Ambiance Apparel warehouse, conducted by armed immigration officers and federal agents, continue their anxious wait.

Immigrants emphasize that they have no information about the status of their detained family members.

For example, according to a report in The Guardian, Yurien Contreras, whose father Mario Romaro was detained, said at a press conference in Los Angeles on Monday morning, “I saw them handcuff my father, chain him by the waist and ankles. My family and I can’t communicate with my father. We know nothing.”

Contreras said her father and other workers were “kidnapped” by the agents, adding, “I demand a fair trial for my father and dozens of other workers.”

Following the raids in the Fashion District, federal agents also handcuffed and detained workers at a Home Depot store in the nearby city of Paramount. Agents were also seen in front of a donut shop in nearby Compton and around schools.

The families of those arrested gathered in front of Ambiance on Monday, demanding the release of their loved ones. Some of the detained workers were the sole breadwinners for their families.

On the other hand, others like José Ortiz had been workers in Los Angeles’s garment district for years. Ortiz had worked at Ambiance for 18 years. His daughter, Saraí Ortiz, said, “He was always here. He was a loyal worker. He is someone who dedicated his life to this community and his job.”

At least 14 of those detained were members of the Episcopal Diocese of Los Angeles. Bishop John Harvey Taylor of Los Angeles said, “On Pentecost Sunday, 14 members of one of our diocesan churches could not come to church this morning. The government tore them from the arms of their families at home and from the body of Christ in the church.”

Hundreds detained, including union leaders

Police detained David Huerta, president of the California branch of the Service Employees International Union, at Ambiance Apparel on the first day. Huerta was released on June 9.

According to the LA Times, Luz Aguilar, an aide to Los Angeles City Council member Ysabel Jurado, was placed on unpaid leave after being arrested on suspicion of “assault with a deadly weapon” on a police officer during an anti-ICE protest.

“The allegations are extremely concerning, and we are taking them very seriously,” Jurado and her team said in a statement.

Authorities also prevented a delegation of elected officials and immigrant rights advocates from observing detentions at the courthouse, a practice that was previously a routine form of oversight.

According to the Coalition for Humane Immigrant Rights, federal agents detained nearly two hundred immigrants in two days. The Department of Homeland Security confirmed that one hundred and eighteen people were detained.

National Guard deployed to Los Angeles

Late Saturday night, White House Press Secretary Karoline Leavitt announced that two thousand soldiers from the California National Guard would be deployed to suppress what White House Deputy Chief of Staff Stephen Miller described as a “violent riot.”

Miller wrote on X that there were “foreign flags waving in American cities to defend an occupation.” Some of the Mexican immigrants in the area were waving Mexican flags during the demonstrations.

Democratic Governor Gavin Newsom and Los Angeles Mayor Karen Bass objected to this order, stating they could handle the situation on their own.

Nevertheless, by early Sunday morning, 300 National Guard members had reported to their posts as a series of marches and rallies were held in various parts of the city.

Despite the arrival of the National Guard, the response to the demonstrations was generally handled by the Los Angeles Police Department (LAPD). LAPD cars, SUVs, trucks, motorcycles, and later, horses, intervened against the protesters while helicopters and surveillance drones flew low overhead.

Pentagon sends Marines to the region

Meanwhile, as of June 10, 700 Marines were sent to the city by order of President Donald Trump to support the National Guard.

According to a statement from the US Northern Command (Northcom), the command activated a Marine Corps Battalion that Secretary of Defense Pete Hegseth had ordered to be ready for deployment over the weekend amidst ongoing protests against ICE raids.

Approximately 700 Marines from the 2nd Battalion, 7th Marine Regiment, 1st Marine Division, based at Twentynine Palms, California, will “seamlessly integrate” with National Guard troops already deployed to Los Angeles to protect federal personnel and property, the statement said.

The command stated that the Marines are “trained in de-escalation, crowd control, and rules for the use of force.”

In a post on X, Hegseth linked the deployment to increasing threats against federal officers and buildings. “Due to increased threats against federal law enforcement and federal buildings, approximately 700 active-duty US Marines from Camp Pendleton are being deployed to Los Angeles to restore order,” Hegseth wrote, then took a swipe at Governor Gavin Newsom, finishing with, “It is our duty to defend federal law enforcement, even if Gavin Newsom won’t.”

California’s Democratic leaders criticized the decision, saying it would further escalate tensions that had already led authorities to use tear gas during clashes with protesters. Trump told reporters, “We will send whatever it takes to ensure law and order.”

In a statement posted on X, Newsom’s press office criticized the movement of the Marines as “mobilizing the best unit of the US military against its own citizens.” The office added, “It is completely unjustified, unwarranted, and unprecedented for the tension to reach this level.”

Trump threatens Governor Newsom with ‘arrest’

President Trump insisted that this deployment was necessary to stop the protests against ICE.

This is the second time in the last 60 years that a US president has mobilized a state’s National Guard troops without the governor’s consent.

“The troublemakers are professional agitators. They are rioters. They are bad people. They should be in jail,” Trump told reporters on Monday (June 9).

Trump also said he would support Governor Newsom’s arrest. The President said this in reference to a back-and-forth between his “border czar” Tom Homan and Newsom. When Newsom said, “Come and arrest me,” Homan replied, “No one is above the law. Those who cross the line, who commit crimes, can be arrested.”

However, Newsom accused the Pentagon of “lying to the American people” to justify the deployment of troops within the state, claiming the situation only became violent after the US military deployed soldiers.

Newsom officially requested that the Trump administration withdraw National Guard troops from the streets, and the state of California has sued the Trump administration over the deployment, which its officials have described as “illegal.”

Trump also said, “Look, I like Gavin Newsom. He’s a good guy, but he’s extremely incompetent. Everyone knows it. All you have to do is look at the little railroad he built. It costs about 100 times the budget.”

Protests spread to other states

The anti-ICE demonstrations that started in Los Angeles, California, have begun to spread to other states.

On Monday, a largely peaceful march was held in downtown Austin, Texas, to condemn the nationwide increase in immigrant detentions.

In another Texas city, Dallas, dozens gathered with banners and flags to protest the Trump administration’s harsh measures against immigrants.

Police arrested a group of protesters who occupied Trump Tower in New York on Monday, demanding that ICE release the immigrants detained in recent raids.

New York police also reported that about 20 people were arrested during protests that broke out after ICE detained numerous immigrants at a courthouse in Lower Manhattan.

According to police, 23 people were arrested when activists gathered in front of the US Immigration Court on Varick Street near West Houston Street. While 18 were released with summonses, the status of the other 5 was not immediately known.

According to Hell Gate, the detained protesters were trying to block two vans that ICE agents were using to transport detained immigrants.

Republicans want to increase penalties for assault on police

Texas Republican Representative Tony Gonzales is preparing to reintroduce a bill aimed at stiffening penalties for assaulting police officers following the recent protests in Los Angeles.

The bill, previously introduced by Gonzales in 2023, aims to “increase prison sentences and fines for crimes of assaulting or obstructing law enforcement officers in the performance of their duties.”

According to a press release from Representative Gonzales on June 9, the bill is named the “Crimes Against Police Services Act” (COPS Act).

“The chaos created by rioters in Los Angeles this weekend was far from a peaceful protest; it was complete anarchy. Radical activists damaged Border Patrol and ICE vehicles on duty, resulting in injuries. It is time to emphasize a very clear message: those who harm law enforcement officers will face severe consequences,” Gonzales said in the press release.

Gonzales stated that he will introduce the COPS Act to Congress this week.

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The system that needed Lindsey Graham

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Thomas Karat, behavior analyst

The senator died Saturday night of an aortic dissection, at seventy-one, in the middle of a campaign for a fifth term. His communications director cited the medical examiner’s preliminary finding: a rupture in the body’s largest artery, the consequence of arteriosclerotic cardiovascular disease. The tributes arrived within hours. Trump called him a true American patriot. Volodymyr Zelensky, who had met him twice in the preceding week, called him a friend who was there when it was needed most. Mark Rutte and Benjamin Netanyahu sent their own. Roger Wicker, chairman of the Armed Services Committee, said there were no words to describe Graham’s impact on the foreign and domestic policy of the United States.

There are words. The obituaries have chosen the wrong ones, and in doing so they have skipped the only question worth asking about a man like this. Not whether he was sincere in his convictions — he was, exhaustingly so — but how a senator whose reflexive answer to every foreign crisis was force spent twenty-three years being handed the committee seats, the airtime, and the ear of four presidents that let him act on it. Graham was not an aberration the system tolerated. He was a product the system manufactured, promoted, and kept in stock because he was useful.

Consider the shape of the career. In March 2003, as the bombs fell on Baghdad, Graham told the country that past disagreements should give way to a shared commitment to see the effort through. The war he blessed that day killed more than a quarter of a million Iraqi civilians by the most conservative direct-death counts, birthed the insurgency that became ISIS, and left the country a wreck. He drew no lesson from it. When Libya was broken open in 2011 and left to its warlords, he had backed the intervention. When Syria was pulled apart, he had wanted deeper involvement. Across two decades, the country would be devastated, and Graham’s response to each devastation was to locate the next one.

By February of this year the next one was Iran. On the twenty-sixth, under his own Senate letterhead, Graham published an essay that reads now like a confession left in plain sight. Iran, he wrote, was facing a Berlin Wall moment. The regime was at its weakest point since 1979, and his ultimate hope was that regime change would be achieved. He described the October 7 attacks, in his own phrasing — as a silver lining, because the Israeli campaign that followed had degraded Iran’s military. He praised Trump for pursuing, in his words, peace, not war, in the same paragraphs that celebrated a bombing campaign already under way. The strikes had a name: Operation Midnight Hammer. Graham called it the largest opportunity for peace and prosperity in the Middle East in over a thousand years.

He said the quiet part in Tel Aviv, to reporters, on February 16, less than two weeks before the strikes began. The United States was on the verge of eliminating the largest state sponsor of terrorism in the region. On Fox News, days into the war, he offered the ledger in its rawest form: when the regime goes down, he said, there would be a new Middle East, and the United States would make a tremendous amount of money. Venezuela and Iran held nearly a third of the world’s known oil reserves, he noted, and the point of the exercise was a partnership with those reserves. Regime change as a real-estate transaction. He had made the trip to Israel, the UAE, and Saudi Arabia the week before to reaffirm, he wrote, that all of it was attainable and would be extremely beneficial to the United States. Weeks earlier he had met with Mossad, telling reporters they would tell him things his own government would not.

None of this cost him anything. That is the part the eulogies cannot hold in view, because to hold it in view is to indict the institutions doing the eulogizing. A senator who spent a career being wrong about the consequences of American force — wrong about Iraq, wrong about Libya, wrong about what would follow the fall of every regime he wanted to fall — was never demoted for it. He was promoted. The record of his committee assignments tells the story in the driest possible language. For years he sat on the Armed Services Committee, from which he lectured the Senate that its love for the troops bought nothing, that only appropriations did, that a colleague worried about the budget was out of touch with the world. By the time of his death he chaired the Budget Committee and sat on Appropriations — the panels that write the numbers and bless the spending. The man who wanted every war was placed, again and again, on the committees that pay for them.

Follow the money and the shape sharpens further. Graham’s donors, across a career documented in Federal Election Commission filings, clustered where his positions pointed. The defense contractors — the makers of the aircraft, the missiles, the systems — routed money to his committees and his leadership PACs. The specific career totals sit behind a paywall that blocks automated verification, and so no single figure belongs in this account. But the pattern needs no exact number to be legible. A senator who votes for every weapons system, who calls insufficient defense spending an emergency, who treats the reduction of the military budget as a moral failure, is a senator worth funding for the people who build the weapons. The contributions were not a bribe. They did not need to be. They were an investment in a man who already believed, and who sat where belief could be converted into contracts.

The media completed the machine. Graham was a fixture of the Sunday shows and the cable green rooms for a reason that had nothing to do with wisdom and everything to do with format. He was quotable, available, and reliably hawkish, which made him the perfect guest for programs that reward certainty over accuracy and confrontation over reflection. The pipeline ran in both directions. The airtime made him a national figure, and being a national figure got him more airtime, and the whole apparatus rewarded the escalation it claimed only to be covering. When he called for bombing Iran regardless of Iran’s involvement in a given attack, and told Israel to finish the job, the remarks drew condemnation abroad and bookings at home. The market for a war hawk was deep, and he supplied it.

What made Graham durable was that his convictions never had to survive an election of ideas, only the tolerance of the institutions that housed them. He denounced Trump in 2015 as a race-baiting xenophobic bigot and a jackass, and by his second term was among the president’s most consistent defenders, having discovered that proximity to power mattered more than the content of the man wielding it. The pitch that helped start this year’s war was delivered, according to reporting on the strikes, over rounds of golf. Iran was a spoiler for everything Trump wanted, Graham told him; collapse the regime and it would be Berlin Wall stuff. The president was persuaded. The bombs fell. And when a reporter asked Graham what the plan was for the day after — the question that Iraq should have burned into every hawk in Washington — he answered that it was not his job to know. The future of Iran, he said, was for the Iranian people to determine. He had wanted the war. The consequences belonged to someone else.

That was always the arrangement. The wars were his to advocate and never his to own. He would appear on the morning shows to demand them, sit on the committees to fund them, take the money from the firms that profited from them, and when they curdled into the next disaster he would be on television again, demanding the next one, his authority somehow enhanced rather than diminished by the wreckage behind him. This is not the biography of an outlier. It is the biography of an incentive structure, wearing a man’s face.

He died with the seat already in motion. Within hours, before any burial, the reporting had turned to the scramble to replace him, to the governor who will name a temporary successor, to what his absence means for a Republican majority counting every vote. Trump told NBC he already had someone in mind. The machine that made Lindsey Graham did not pause to mourn him. It began, immediately, to fill the vacancy — because the position he occupied was never really about the man. It was about keeping the seat filled by someone who would say what he said. There is no shortage of applicants. That is the dread the eulogies are built to keep you from feeling. He is gone, and nothing that produced him has changed.

***

Thomas Karat has spent a career in multinational technology corporations and is a behavior analyst holding a Master’s in Science and Communication from Manchester Metropolitan University. His work focuses on the psychology of language in power dynamics, and his graduate thesis examined linguistic deception markers in high-stakes business negotiations. He hosts a YT podcast, SaltCubeAnalytics, and publishes at karat.substack.com

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Trump financial disclosures show millions invested in major defense contractors, analysis reveals

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US President Donald Trump’s financial disclosures released last week reveal that he has invested millions of dollars in approximately a dozen companies, including weapons manufacturers and defense contractors, according to a news analysis by Responsible Statecraft. The analysis shows that Trump, through investment firms representing him, acquired shares in defense sector companies valued at a total of between $9.7 million and $24.3 million.

The companies receiving investment included Palantir, Lockheed Martin, and General Dynamics.

According to the financial disclosures, the investment firms managing Trump’s assets invested between $1.6 million and $3.9 million in the data analytics and artificial intelligence company Palantir.

The analysis noted that Palantir developed the AI-powered Maven Smart System, which is utilized in US military operations in the war with Iran. The same analysis also claimed that the company contributed to the development of software named “Big Daddy,” which is used in Israeli military operations in Gaza.

Trump’s portfolio also includes shares in Boeing. The analysis stated that Boeing sold F-15 fighter jets valued at $8.6 billion to Israel less than three months before Trump and Israeli Prime Minister Benjamin Netanyahu initiated their joint war against Iran.

According to the financial disclosures, Trump also invested in GE Aerospace, Lockheed Martin, General Dynamics, and RTX, the manufacturer of Tomahawk missiles.

The analysis wrote that weapons produced by these companies were heavily used in the war with Iran, including Tomahawk missiles used in a US Air Force strike on a primary school in the Iranian city of Minab. The report stated that at least 168 children lost their lives in this attack.

According to Responsible Statecraft, the majority of these companies received new contracts from the Pentagon aimed at replenishing US missile stockpiles depleted during the war with Iran.

RTX signed a $373 million contract for 23 Standard Missile-3 IB interceptor missiles, while Lockheed Martin was reported to have secured a $35 billion contract intended to quadruple its production of the THAAD missile defense system.

The financial disclosures showed that Trump’s investment firms also invested in shares of Kratos Defense, Honeywell, Howmet Aerospace, L3Harris, and TransDigm.

Responsible Statecraft noted that the shares of these companies gained significant value within a year of Trump returning to office. According to the analysis, in 2025, Palantir shares rose by 135%, Kratos shares by 188%, GE Aerospace shares by 84%, and RTX shares by 61%.

In April, Trump posted on Truth Social, stating: “Palantir Technologies has proven to have very powerful capabilities and equipment on the battlefield. Ask our enemies!” Following the post, the company’s shares reportedly rose by approximately 3% within a few minutes.

Financial records showed that Trump generated more than $2 billion in income in 2025. Responsible Statecraft wrote that this amount is “unprecedented” for a sitting US president.

According to the report, the majority of this income was derived from investments linked to cryptocurrency companies such as World Liberty Financial and Binance. Trump reportedly earned hundreds of millions of dollars from “memecoins” launched through these companies, though these crypto assets later suffered sharp declines in value, resulting in losses for numerous investors.

The analysis stated that Tahnoun bin Zayed al-Nahyan, the UAE National Security Advisor and brother of the UAE President and Foreign Minister, invested $500 million in World Liberty Financial and $2 billion in Binance. Trump subsequently approved the export of advanced AI chips to the UAE, a decision that the analysis indicated created the impression of being linked to the crypto investments.

According to the analysis, Donald Trump Jr. is also connected to companies operating in the unmanned aerial vehicle and defense technology sectors. Trump Jr. is a major shareholder and advisory board member at Unusual Machines, which manufactures drone components, while his investment firm also holds stakes in Powerus and Vulcan Elements, both of which hold Pentagon contracts.

Trump Jr. serves on the board of Powerus, which markets drone systems used to intercept Iranian missiles to Gulf countries, and Eric Trump is reported to hold a financial interest in the same company.

Richard Painter, who served as the chief White House ethics lawyer during the George W. Bush administration, evaluated the situation, saying: “These countries are under great pressure to buy from the president’s sons. In this way, the president will do what they want.”

When asked last year about potential conflicts of interest arising from Trump’s business activities, White House Spokesperson Anna Kelly responded: “There are no conflicts of interest.” Trump also acknowledged the existence of conflicts of interest in an interview with the New York Times earlier this year, but argued they were not important, saying: “I realized that nobody cares.”

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US Democrats split over proposed data center moratoriums amid rising energy and climate concerns

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Democrats in the United States increasingly view the rapid expansion of data centers as a critical challenge, yet the party remains deeply divided over how to address the issue.

For many Democrats, the immense energy consumption of these facilities—which drives up household electricity bills and exacerbates climate change—makes some form of restriction an inevitable policy option. The growing public unpopularity of these centers raises the political stakes for Democrats, who are seeking solutions to protect their prospects in this year’s midterm elections on promises of lowering the cost of living.

Last month, Representative Frank Pallone Jr., the top Democrat on the House Energy and Commerce Committee, called for a moratorium on data center construction. However, senior party leadership has shown little enthusiasm for the proposal.

These internal divisions are also playing out at the state level, where at least two Democratic-controlled legislatures have passed data center moratoriums. One of those measures was vetoed, while the other is currently awaiting the governor’s signature.

Support for restricting data centers does not align strictly along traditional ideological lines. A faction of anti-establishment Republicans has backed such efforts, while other members of the Republican Party continue to debate how, or even if, to regulate the massive server farms powering the artificial intelligence boom.

In Congress, Democratic leaders have repeatedly argued that data centers must pay their fair share of rising energy costs.

Earlier this year, Senate Majority Leader Chuck Schumer stated that Democrats would push for “strong, enforceable consumer protections.”

Similarly, House Minority Leader Hakeem Jeffries expressed support for technological innovation while emphasizing, “We must ensure we are protecting the American consumer.”

However, neither leader has endorsed a specific legislative proposal to achieve these objectives. Requests for comment sent to the offices of Schumer and Jeffries went unanswered.

Jeffries also told Politico that halting data center development is “certainly not a position I am articulating at this time.”

In contrast, influential progressive figures, including Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez, argue that a total moratorium on data center construction is necessary.

In March, these lawmakers introduced legislation that would ban the construction of new data centers until Congress enacts a suite of AI safety measures, ranging from government audits of AI models to protections against mass layoffs.

Pallone voiced strong support for the concept last month during a subcommittee hearing on a separate data center bill, stating he favored “a national AI data center moratorium until we can figure out a way that this is not going to harm our nation’s air, water, and utility bills.”

Following his remarks, Pallone added: “The reality is that everything with these data centers is moving so quickly, and I am concerned about the impact on electricity consumers and the environment.”

The Data Center Coalition, an industry group backed by several major technology companies, argued that a national moratorium would deter investment in the US, damage the economy, and “send the wrong message to other industries.”

“A federal mandate to halt data center construction risks restricting access to cloud and digital services, undermines our global competitiveness, and would have significant consequences for Americans’ daily lives,” the group said in a statement in late June.

Maxwell Shulman, a policy research analyst at Beacon Policy Advisors, suggested that the primary force driving the recent push for moratoriums is a “general hostility toward AI and Big Tech.”

“People see many of these changes. They are worried about AI. They are worried about the economy and their jobs, and they feel there is very little they can do about it,” Shulman said. “They view data centers not only as the physical embodiment of AI, but also as one of the rare areas where they can actually have a say or fight back.”

Shulman added: “I think moratoriums are a blunt but effective tool to demonstrate this opposition or concern toward AI in general, not just data centers.”

Meanwhile, a narrower, bipartisan bill has been gaining momentum in Congress.

The Electricity Consumers Protection Act, led by Representative Kathy Castor, a Democrat, and Representative Gabe Evans, a Republican, would require state utility regulators to establish rules ensuring that ordinary Americans do not foot the bill for new power generation and transmission lines built to support high-load consumers like data centers.

The bill passed the House Energy and Commerce subcommittee in late June and is scheduled for consideration by the full committee.

Castor said Congress should begin by establishing regulatory safeguards, though she did not rule out supporting a construction halt in the future.

“People want guardrails. They do not want their electricity bills to go up, and they are worried about water,” Castor said last month.

When asked about her stance on a moratorium, Castor added: “If we reach a point where these guardrails are not put in place and companies simply ignore them, we will have to move to that stage.”

At the state level, Democratic governors have blocked or slowed legislative efforts to limit data center expansion. In Maine, the legislature passed a bill to ban new data center construction for 18 months, but Governor Janet Mills vetoed the measure because it did not exempt an ongoing $550 million project.

New York lawmakers passed a one-year data center moratorium in June, which is currently awaiting action from Governor Kathy Hochul. According to a report by Politico, Hochul is instead considering an executive order for a shorter, six-month halt.

Other Democratic governors have actively opposed data center moratoriums.

“Walking away from a technology that will continue to propagate is leaving the table,” Representative Abigail Spanberger, a Democrat from Virginia, told Politico this week.

In California, Democratic Governor Gavin Newsom vetoed a bill that would have required planned data centers to estimate their water usage.

As broad moratoriums encounter resistance, state-level Democratic leaders are turning to more targeted solutions, such as reassessing data center tax credits. In Illinois, Democratic Governor JB Pritzker announced in June that the state would suspend its tax incentives for data centers due to energy and water concerns.

Some Republicans have adopted a similar approach. In May, Ohio’s Republican Governor Mike DeWine instructed state officials to temporarily halt the evaluation of new tax exemption requests while lawmakers review data center growth in the state.

In Virginia, lawmakers kept data center tax incentives intact after prolonged budget debates that forced a special legislative session. Spanberger instead supported the introduction of a new tax on electricity consumption.

Meanwhile, in New Jersey, Governor Mikie Sherrill signed legislation this week that places data centers into a separate category of electricity consumers. The governor’s office stated that the measure will ensure data centers pay for their own energy use and the associated infrastructure.

Commenting on the dynamics facing state leaders, Shulman said: “There is a massive amount of investment potential and a lot of potential jobs at stake. And I really think these Democratic governors do not want to shoot their own states in the foot in the race to capture these jobs.”

Shulman added: “The goal for a Democratic governor is to send a policy signal strong enough to make voters feel they are taking a tough stance on AI, or addressing its potential negative consequences, while still trying to attract as much investment and as many jobs as possible.”

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