Nov 6, 2026 · 1h 8m
Data-center backlash points toward a political compromise
Did the Midterms Destroy All Hope for Data Centers? | E2360
The fight over AI infrastructure is becoming a test of whether technological expansion can coexist with local control, public costs, and voter distrust.
- 1Election results signal resistance to unchecked data-center growth, not necessarily an end to AI expansion.
- 2A workable compromise could pair data-center taxes with utility protections, environmental safeguards, and community benefits.
- 3The hosts connect AI politics to copyright licensing, Apple’s spending constraints, and broader arguments over taxes and political independence.
Don't miss
Jason Calacanis argues that data centers can regain public acceptance through repeated, concrete promises on power, water, taxes, and local benefits.
The brief
Jason Calacanis and Lon Harris read the midterm backlash against AI data centers as a warning to the technology industry, but not a verdict against AI’s future.
Their proposed political landing zone is pragmatic: data centers pay taxes, protect utilities and the environment, and deliver visible benefits to surrounding communities.
The conversation widens into Jason’s earlier criticism of Trump’s meme coins and tariffs, his insistence on political independence, and the voter distrust behind those arguments.
On copyright, the hosts distinguish stolen data, terms-of-service violations, training on copyrighted works, and copyrighted outputs while debating major revenue-sharing payments for media companies.
Apple’s reported limits on engineers’ AI spending lead to a broader prediction: enterprise AI subscriptions may become far more expensive as usage rises.
The standout tension is whether proactive communication and concrete promises can make data centers acceptable before opposition hardens into partisan politics.
What was said on this episode
26 statements · 16 positive · 7 negative · 1 mixed · 2 neutral
Democrats won majorities in both chambers of Congress.
“Democrats secured majorities in both the House and the Senate.”
Listen at 1:11
More than a dozen Ohio towns restricted or halted new data-center development.
“More than a dozen Ohio towns, for example, voted to halt or restrict new data center development.”
Listen at 1:22
Georgia and Ohio contain over 40% of planned U.S. data-center capacity.
“Georgia and Ohio account for more than 40%, Jason, of all planned U.S. data center capacity.”
Listen at 2:49
Donald Trump handled AI growth exceptionally well.
“I would give Donald Trump like an A to A plus in his handling of it. Like just flawless.”
Listen at 3:52
Lower tariffs and an ending Iran war would benefit stocks and loans.
“it's very bullish for stocks uh for loans, et cetera.”
Listen at 5:30
Divided government is preferable because it provides checks and balances.
“100% having a split government is the preferred case.”
Listen at 5:53
Politicians would moderate data-center opposition after the election through community concessions.
“after the election they get their office for another two to four years you know what their position is going to be we sat down with the data center people we need peace they're going to pay for their electricity they're going to get rid of um housing tax they're building a stadium for the children”
Listen at 7:39
Data-center policy will likely shift toward negotiated concessions.
“I think this is very likely to happen.”
Listen at 8:00
Slowing AI and data-center expansion would cause a recession or worse.
“If you slow this trade down, we're going to go into a recession or worse.”
Listen at 8:59
The market turmoil creates an exceptional buying opportunity.
“I think it's an incredible non-investment advice. I think it's a generational time to buy.”
Listen at 10:06
Investors should consider buying NVIDIA, Amazon, Uber, Tesla, and SpaceX.
“this would be a great time to nibble on an NVIDIA, on an Amazon, an Uber, a Tesla, a SpaceX.”
Listen at 10:13
Data centers are acceptable unless they pollute or are located too near homes.
“Nothing wrong with data centers. People want them. Only thing that's wrong with them is when they pollute and you put them too close to people's houses.”
Listen at 24:00
Most listed driving, delivery, factory, and Amazon jobs will disappear and workers need redeployment.
“the majority of them will go away and those people will have to be redeployed in some intelligent fashion.”
Listen at 25:15
Most newly elected Democrats are moderates and should work toward the political center.
“most of them are moderates let's call it what it is and so they should drop that rhetoric start working with the left move everybody to the center and let's just try to solve some problems for the american people”
Listen at 27:24
Proactive communication helps data-center companies address public concerns.
“I think it's great to be proactively communicating your plans. And so, yes, I think everything helps getting ahead of this.”
Listen at 35:38
Data centers can avoid raising local electricity bills and use less recycled water than golf courses.
“Data centers aren't going to impact your local electrical bill. We use recycled water only. We use much less water than the golf course.”
Listen at 36:49
Using AP information in real time is not fair use.
“It's not fair use to use their information in real time.”
Listen at 41:21
Content companies will prevail in disputes over AI training on copyrighted works.
“I believe that that's going to be a win by the content companies”
Listen at 42:45
AI companies should allocate 30% of revenue to training-data and media companies.
“I think they should take 30% of their money and give it to training data companies and media companies.”
Listen at 43:29
Corporate AI subscriptions will rise to $100–$300 per month.
“we're going to see the minimum price of entry for a corporation go to 100. $200, even $300 per month to use these services.”
Listen at 48:16
Apple may enter AI late but ultimately produce the best offering.
“they might come in last and do what they did with iphone come in last but best”
Listen at 49:22
Apple can run local AI models and may lead local-model deployment.
“They can run local models. They'll be the first to be running local.”
Listen at 49:55
A future Democratic administration should adopt Trump’s political strategy.
“if we have a Democrat win the White House, they will certainly, the Democrats should absolutely steal Trump's playbook.”
Listen at 54:37
Margin loans above $10 million should trigger capital-gains taxation.
“any margin loans above $10. I have less than $10, so that's a good number for me.”
Listen at 58:49
New York and California may raise top tax rates to 60%.
“I think New York and California are going to go right to 60% when they do that.”
Listen at 1:00:46
The billionaire tax proposal will return and pass next time.
“It's coming back. I guarantee it. And I think it's going to pass next time.”
Listen at 1:01:04
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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