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Trump’s class alliances: Which companies are profiting from ICE operations?

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Operations conducted by Immigration and Customs Enforcement (ICE) units across the United States offer significant clues regarding the “class alliances” underpinning Donald Trump.

Institutions including companies like Palantir and Deloitte have reaped more than $22 billion in total earnings from contracts with agencies situated at the center of the aggressive immigration measures Donald Trump implemented over the past year.

As reported by the Financial Times (FT), consultants, technology groups, charter airlines, and a wall construction company managed by a presidential ally were among the primary beneficiaries of the surge in spending by ICE and Customs and Border Protection (CBP).

This funding bonanza began following Trump’s inauguration for a second term last January and has accelerated since the enactment of the “big, beautiful bill” in July.

According to the FT’s analysis of government contracting data, the data intelligence group Palantir has secured $81 million in contracts from ICE since January 2025.

Consultancy firm Deloitte, meanwhile, obtained more than $100 million in new contracts from ICE and CBP during the same period.

Regional companies secure major contracts

The Fisher Sand & Gravel group, led by Republican donor Tommy Fisher—which signed a contract to construct sections of a wall on the southern US border—became the top earner from CBP contracts, generating over $6 billion in revenue since July.

The single largest beneficiary of ICE contracts was CSI Aviation, a company organizing charter flights for the agency. This firm has secured over $1.2 billion in business since Trump returned to office last January.

These windfalls coincide with a period in which ICE spending on contracts more than doubled in the two quarters following the passage of Trump’s historic legislation, rising from $1.5 billion in the previous six months to $3.7 billion.

CBP spending on private sector companies increased sevenfold between the first and second halves of 2025. The agency reported $2 billion in new contract work this month alone—a sum exceeding the total for the entire first half of 2025.

Much of the agencies’ contracting is for routine work, such as modernizing IT systems or providing outsourced data center staffing, often stemming from previous administrations.

Palantir building a “self-deportation tracking” system

However, other contracts relate to new tactics employed by the Trump administration to identify, detain, and deport undocumented immigrants, or to encourage them to “self-deport.”

Palantir, which has held contracts with the agency for over a decade, signed a $30 million deal in April to build an operating system to be used for “self-deportation tracking,” according to a federal contract announcement.

The company also signed a contract to provide tools intended to “facilitate operations for the selection and apprehension of illegal aliens.”

Palantir CEO Alex Karp had previously dismissed concerns regarding the group’s work for the US government.

Karp stated last year:

“I will use all my influence to ensure this country remains skeptical on immigration and possesses a deterrent capacity. Do we have to pretend that having borders is immoral?”

AI-based language models in the service of immigration enforcement

According to the 2025 DHS AI Use Case Inventory published by the US Department of Homeland Security (DHS), ICE has been using Palantir’s AI products to process large volumes of civilian reports since May of last year.

This tool, named the “AI-Enhanced ICE Report Processor,” utilizes large language models (LLMs) to summarize or categorize received reports and offers functionality to translate reports received in non-English languages into English.

The “Advanced Lead Identification and Enforcement Target Selection” tool, which ICE has utilized since June of last year, was also purchased from Palantir.

This tool, known by the acronym “ELITE,” uses artificial intelligence to identify leads—such as the addresses of enforcement targets, including for deportation—and allows agents to share this information.

It has also been revealed that ICE uses Palantir-based generative AI for internal developers’ code writing and system administration.

Anduril’s surveillance towers in the “Big, Beautiful Bill”

Trump’s legislation also mandates that all new border surveillance towers be certified as “autonomous.” According to a report published in The Intercept last July, only Anduril’s “towers” meet this requirement.

Signed into law by President Trump on July 4th, this bill provides significant spending increases for military and law enforcement projects, including over $6 billion for various border security technologies.

These initiatives include the expansion of the “virtual wall”—a growing network of sensor-equipped surveillance towers along the US-Mexico border. On this border, computers are increasingly assuming the task of detecting and apprehending migrants.

Anduril began its operations by selling software-backed surveillance towers to CBP. The company promotes its “Sentry Tower” series for its “autonomous” capabilities, which use machine learning software to constantly scan the horizon and detect potential objects of interest (such as people, vehicles, or animals attempting to cross the border) without the need for human manpower to monitor sensor data.

Thanks to bipartisan support for the vision of locking down the border with computerized eyes, Anduril has become a dominant player in border surveillance, surpassing incumbents like Elbit and General Dynamics.

Indirect support from Big Tech

Deloitte, one of the largest public sector contractors in the US, accepted recent contract updates providing further funding for “law enforcement systems and analytics for enforcement and removal operations.”

Its contracts also contain updated provisions for “internet research and data analysis support services” for ICE’s target identification operations division.

Many major technology companies do not contract directly with the federal government, but their products and services are offered through vendors, making it difficult to determine the financial benefits they derive from the funding surge.

Amazon and Microsoft, the world’s two largest cloud groups, provide services worth at least $75 million and $93 million, respectively, to US agencies.

These services are primarily provided through third-party vendors such as Dell Federal Systems.

In September, ICE awarded a $24 million contract to a third party to provide “hosting support” for services offered by Amazon’s cloud division.

Additionally, it paid Dell $19 million for Microsoft enterprise licenses.

Smaller tech groups, such as Motorola Solutions, have also signed contracts with ICE.

The Illinois-based group holds $19 million in contracts in its own name, while a third-party vendor won a $260 million contract to provide Motorola radios and batteries to personnel involved in enforcement actions.

Furthermore, AI technologies from various major tech companies are being utilized. ICE used a GPT-4 based AI tool from OpenAI to review resumes for recruitment.

AI technologies from Meta, Google, OpenAI, and Anthropic are also in use.

Land and warehouses for new prisons

Despite protests in small towns and cities across the US, the Trump administration continues to purchase warehouses it plans to convert into immigrant prisons as part of a project that could represent the largest expansion of detention capacity in US history.

According to Bloomberg, the cost of purchasing just two warehouses was $172 million. A third warehouse in El Paso, Texas, could become one of the largest prisons in the country with a capacity of 8,500 beds once completed as planned.

These deals mark the latest development in ICE’s plan to utilize 23 warehouses to detain thousands of immigrants arrested by federal agents in Minneapolis and other cities.

On January 16, according to a local court filing, the administration paid $102 million for a plot of land near Hagerstown, Maryland. A week later, the government paid $70 million in cash for a warehouse in Surprise, Arizona.

The prices, which are roughly in line with the industry average for the warehouse market, cover the purchase of these currently vacant spaces.

ICE must pay companies to equip the buildings with toilets, showers, beds, dining, and recreation areas, and subsequently to operate them as detention centers.

The warehouses, most of which were originally designed and marketed as e-commerce distribution facilities, are crucial to the administration’s $45 billion construction of immigrant detention facilities.

In recent weeks, the federal government has toured potential sites in more than 20 cities with companies and shared designs with them, including preferred layouts for at least 15 locations.

According to sources speaking to Bloomberg, companies that will convert these warehouses into prisons have been asked to submit bids for the initial locations, starting with Hagerstown.

The pattern is evident here as well: For instance, in Salt Lake City, the warehouse designated by ICE as a future “mega-center” prison is owned by the Ritchie Group, a local family business.

Following pressure from protesters arriving at their offices, the company announced it had “no plans to sell or lease the property in question to the federal government.”

Meanwhile, KPB Services, the company that won the tender for the design to convert warehouses in Kansas into detention centers, appears to be a shell company.

ICE has increased detention capacity by leveraging long-standing relationships with private prison companies such as CoreCivic and Geo Group. These companies have provided ICE access to additional beds in their existing prisons, purchased and leased new facilities, and reopened shuttered ones.

In earnings calls held in November, these companies stated they could make a total of more than 30,000 beds available should the federal government request them.

British firms among the beneficiaries

Subsidiaries of several prominent UK-based companies have also secured active contracts with these agencies. British private security firm G4S has signed contracts worth $68 million with ICE since January 2025.

These contracts primarily cover providing “ground transportation services” for detainees during enforcement and removal operations.

Smiths Detection, a unit of the London Stock Exchange-listed Smiths Group that manufactures screening and detection technology for border control, has earned over $62 million from CBP contracts during Trump’s second term.

Smiths stated that it provides “threat detection and security screening technologies for ports and borders that curb illegal activity.”

Regional family businesses, Republican donors, Silicon Valley alliance

John Ganz, who closely examined the companies benefiting from ICE and CBP contracts on the Unpopular Front blog, offers significant clues regarding the alliances behind the Trump administration.

According to Ganz, while there are a few publicly traded and venture capital-funded firms, the largest beneficiaries exhibit a striking pattern: They are all regional family businesses displaying dynastic characteristics and are significant donors to the Republican Party.

Moreover, these regional companies have been involved in legally dubious practices. For example, Fisher Sand & Gravel, which sits at the top of the list, is owned by the Fisher family living in Dickinson, North Dakota.

The Fisher family makes generous donations to Republicans, and President Tommy Fisher frequently appears as a guest on conservative TV and radio programs.

The Fisher company’s history includes accusations of environmental violations, questionable labor practices, and, most notably, fraud.

In 2009, Fisher’s then-owner Michael Fisher pleaded guilty to nine counts of tax fraud and was sentenced to 37 months in prison and ordered to pay over $300,000 in restitution.

The company’s former CFO Amiel Schaff and former auditor Clyde Frank were also each found guilty of one count of conspiracy to defraud the US in 2009.

Under a 2009 agreement with the Department of Justice, the company was required to pay a total of $1.16 million in restitution, penalties, and fines, implement measures to prevent future fraud within the company, and cooperate with the IRS in the audit of tax returns.

Another former president of the company, David William Fisher, was found guilty in 2005 of possessing child pornography involving a 10-year-old child and was sentenced to 10 years in prison.

In exchange for his guilty plea, charges of sexual abuse of a minor were dropped, and he was released on April 30, 2010.

According to Ganz, companies further down the list, such as SLSCO, CSI Aviation, and Barnard Construction, fit this same model: regional, closely-held companies that are, so to speak, “politically integrated.”

Scholar Melinda Cooper, cited by Ganz, points to the tension between private, unincorporated, family-based companies and corporate, publicly traded, shareholder-owned companies.

According to Cooper, “family-based” capitalism, which finds representation in the White House with Trump, extends from the smallest family businesses to the vastest dynasties and is essentially shaped by the alliance between the two.

Trump also belongs to this “social class”: a representative of companies whose business methods are “informal”—or, to put it more bluntly, often outright criminal.

Ganz concludes his piece as follows:

“When you add in the presence of [Peter] Thiel-backed firms like Anduril, you start to understand the material basis of the Trump coalition. It is an alliance of family-based regional crony capital and a reactionary section of the tech sector focused on defense and security. Add to that ICE’s function as a jobs program for the Trumpenproletariat gang and all the illiterate influencers, and voila, you get the class composition of real American fascism, which is characteristically a protection racket. It is a gang all the way down.”

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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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