‘Massive implications’: Calls for a pause on data centers helps Kansas Democrat to primary victory

[00:00:00] Speaker 1: You might not think about data centers much, but more and more Americans are being forced to do so. As the use of artificial intelligence has boomed, tech companies have sought to rapidly expand construction of data centers in many parts of the country. According to the Pew Research Center, more than 3,000 data centers are currently operating in the United States, and an additional 1,500 are in development. Now, here's the thing about data centers, if you haven't seen one around you. They take up a lot of land, they use up a lot of water and power, and they drive up energy prices. And their growth has proven to be deeply unpopular amongst voters. In one recent Gallup poll, 71% of Americans say that they either strongly or somewhat oppose the construction of a data center in their community. Only 27% said that they were in favor of it. It's one of the few issues on which voters across the ideological spectrum seem to agree. But Donald Trump, who's cozied up to the billionaire tech executives who want to expand their AI footprint, sees it differently. He wants to see more data centers across the country. His administration is actively trying to gin up support for them. They're trying to convince voters that data centers will boost local economies and create jobs. The problem is that data centers are largely filled with computer servers as opposed to workers. It's another example of how the Trump administration is disregarding what the public says it wants, or in this case, what it says it doesn't want. And it could end up being a liability for Republicans in November's elections, which is what brings us to Kansas. The two front runners in the Democratic primary race for governor last night were Cindy Holscher and Ethan Corson. Corson was endorsed by the sitting Democratic governor, Laura Kelly. Both of these candidates are state senators. Both were elected in 2020. They even represent neighboring districts in the suburbs of Kansas City. But when they faced off against each other on the campaign trail, there was one issue in particular on which they diverged and that is data centers. Both of them previously voted in favor of a bill that supported the expansion of data centers in Kansas. But during the campaign, Holscher shifted. She's now calling for a pause on data center construction in the state. Last night, she won big. She defeated Corson by 10 points to become the Democratic nominee. By the way, Holscher is not the only candidate who won a primary last night who wants to see more regulation of data centers in Michigan. Both Abdul El-Sayed and William Lawrence have also taken similar positions. Joining me now is Cindy Holscher, Kansas state senator and Democratic candidate for governor. Senator Holscher, welcome to the show and congratulations on your victory last night. Thank you so much. It's great to be here. Your position changed since supporting a bill that offered tax breaks to data center developers. In a questionnaire for the Johnson County Post, you explained, quote, I'm not opposed to data centers. I'm opposed to asking Kansas families, farmers and small businesses to subsidize some of the wealthiest corporations on Earth without any clear guarantee that Kansans will benefit, end quote. I think that's the issue. I don't think there's any standing notion that something about data centers is inherently bad. It's that we may be footing the bill for some very rich people. [00:03:02] Cindy Holscher: Absolutely. And I mean, of course, we have data centers already in Kansas. What is the big concern here is the fact that what we have seen happen across the nation are these large hyperscale data centers that come in without the appropriate guardrails. And then we see the depletion of resources like water and the skyrocketing of utility rates. And that's an absolute concern. And the jobs that have often been promised haven't manifested. What do you think the answer is? Because [00:03:31] Speaker 1: inadvertently, people use AI all the time. You may really like using AI. It's got massive implications that probably America should be at the front end of because they're important from a strategic and national security and economic perspective. What's the answer to this question? [00:03:46] Cindy Holscher: Again, it's the guardrails. And we know that the technology exists to ensure that that the data centers that come in are the kind that use low amounts of water, that it doesn't overburden our system in terms of energy usage. And again, the technology is there. It's just ensuring that those requirements are put in place. It reminds me of when the automobile manufacturers first had to start putting seatbelts into cars. Some of them were hesitant to do so because it cuts into the profit margin. The technology was there. But until basically people and the government said, hey, you're going to do this because it's safer for the people, they weren't going to do it because, again, it cuts into the profit margin. And as you pointed out earlier, these are companies that are often very wealthy tech executives that, you know, the technology is there. The ability is there. We as a people and as a state just have to make sure the guardrails are in place. [00:04:39] Speaker 1: Well, this is an important thing because Kansans do this, right? They like to say, we're going to make our own rules. The federal government has implied that you shouldn't be able to as it relates to data centers, that this is too important and too big for for governors and states to make decisions upon your response to that. You know, we've always believed in the sovereignty of [00:04:58] Cindy Holscher: the states and the state's ability to make decisions. And we're talking about resources that are local to Kansas, the water supply and the energy utility grid. So these are things that are very important on the state level that we absolutely need to have a process in place. [00:05:15] Speaker 1: Let's talk about the sovereignty of your state. Sixty one percent of Kansas voters yesterday rejected a ballot ballot measure that was really a backdoor attempt to overturn abortion rights in Kansas. It's not the first time, probably not going to be the last time that they're going to try something like that. Kansans have repeatedly said that they support abortion rights, which, by the way, might be the same as supporting abortion to some people. To some people, it's just supporting abortion rights. But Kansans keep doing saying this. And yet Republicans in Kansas keep trying to find a workaround. [00:05:43] Cindy Holscher: You know, Kansans do not like having their rights attacked is what this is telling me. And it should be telling the nation. In August of 2022, we had the abortion amendment and that one failed in terms of what the GOP was pushing. And now, again, a different attempt to try to take away access to reproductive health care. And as you point out, once again, that amendment failed. So again, what this shows me is Kansans do not like having their rights attacked. [00:06:07] Speaker 1: Kansas Governor Laura Kelly endorsed your opponent during the primary. This afternoon, she endorsed you for the general election. Talk to us about this. Obviously, this isn't, you know, we were all looking at Michigan yesterday, but I was paying attention to Kansas. Talk to me about what sort of work you have to do in the next 90 days to unify before the midterms. [00:06:27] Cindy Holscher: Well, thank you so much for paying attention to Kansas. A lot happening here. And you're absolutely right. There's 90 days. It's a pretty quick turnaround period from the primary to the general. So a lot of work to make sure that not only do we have Democrats on board and, you know, the party is coalescing. We are moving forward. We are ready to take on November and take on Ty Masterson. And I'm already having people reach out to me from the Republican Party, as well as independents that are coming on board, because it hasn't been that long since we had a very extreme governor here in Kansas, Governor Sam Brownback, who devastated the state. And Ty Masterson is one of the most extreme candidates that could have been chosen. Memories are short and memories are still fresh in terms of what happened under Brownback. And the message is this. And I think most Kansans see it. We simply cannot afford Ty Masterson as governor. [00:07:31] Speaker ?: Thank you.