Data Center Backlash Sparks Public Outrage! Ackman Endorses Ramaswamy's 'Ohioans First' Plan: Free Electricity, Lower Property Taxes

Bill Ackman, CEO of Pershing Square, has publicly endorsed Republican Ohio gubernatorial candidate Ramaswamy's data center policy, calling it 'interesting.' As AI data centers rapidly expand across the U.S., sparking debates over electricity, water, noise, and environmental impacts, the balance between economic benefits and cost burdens on residents is becoming a key political issue for 2026.

Ramaswamy recently proposed a 'Ohioans First' data center policy on social media, arguing that Ohio should neither allow unlimited data center expansion nor impose a permanent ban. Instead, he advocates for a policy framework that allows communities to share economic benefits while protecting local neighborhoods.

Ramaswamy highlighted residents' primary concerns: rising household electricity bills, noise, pollution, and the unclear economic benefits for local families. He emphasized that he is 'not pro-data center' but 'pro-Ohio.' While acknowledging that data center construction creates high-paying construction jobs—an opportunity Ohio needs—he insists such development must not come at the expense of local residents.

Under Ramaswamy's proposal, communities hosting data centers would receive three guarantees: first, residents would no longer pay residential electricity bills; second, they would enjoy lower property taxes; third, data centers must comply with air and water quality standards. Ramaswamy stressed that if any of these three conditions cannot be met, the data center should not be built.

He stated that this framework would ensure Ohio families benefit from the AI data center economy while protecting the environment and preserving farmland. The post quickly garnered over one million views and attracted attention from the tech and financial investment sectors. Gerstner, founder of Altimeter Capital, responded with American flag and rocket emojis; Ackman shared Ramaswamy's policy, citing it as one reason for his support in the gubernatorial race.

Ackman's endorsement carries weight. The billionaire investor has closely followed AI and U.S. tech infrastructure, warning that without expanding AI computing power and data centers, the U.S. risks falling behind China in the AI race.

However, rapid data center expansion is now facing bipartisan backlash. As AI model training and inference demand surges, large data centers require massive electricity and water, prompting residents to worry about grid upgrade costs, household electricity bills, land use, noise, and environmental impact.

The Ohio Consumers' Counsel Office notes that increasing data centers are straining the state's power grid and water resources. While data centers bring large-scale commercial investment, their high electricity consumption could raise utility costs for all residents. The office argues that tech companies should bear the costs of power and utility upgrades required by data centers.

Ohio currently has multiple data center-related bills under review. As of April, eight such bills have been introduced in the state legislature, including proposals to establish a data center study committee, mandate water usage disclosure, limit new tax incentives for data centers, and require state public utility commission approval for large facilities.

This shift indicates that the debate in Ohio is evolving from localized opposition to individual projects toward establishing statewide data center regulations.

A core issue is: who should pay for the infrastructure needed by AI data centers?

Large data centers may require new transmission lines, substations, and power generation capacity. If utility companies pass these infrastructure costs to all users through higher electricity rates, the economic benefits accrue to corporations while infrastructure costs are shared by households.

Thus, Ramaswamy's proposal for data centers to compensate residents' electricity bills directly addresses a central political issue in the nationwide data center expansion.

However, the policy's practical feasibility is questioned. It remains unclear whether data center operators will agree to cover residents' electricity bills, how the state will define the beneficiary population, calculate compensation, and enforce compliance.

Additionally, property tax reductions could create fiscal challenges. Ohio's local governments, schools, and public services heavily rely on property tax revenue. If residents near data centers receive significant tax breaks, governments must find alternative revenue sources or cut spending to maintain services.

Ramaswamy is also pushing broader property tax reform. His campaign launched a 'Cornerstone' ad in March, promising property tax relief for Ohio residents while maintaining police, fire, and public school services.

However, the fiscal impact has drawn scrutiny. Innovation Ohio analyzed Ramaswamy's property tax proposal and estimated that reverting taxes to 2021 levels could reduce state and local government revenue by billions annually. The group projected an initial annual revenue loss of approximately $4 billion under Ramaswamy's plan.

Meanwhile, Ramaswamy's personal investment ties to the data center industry have become a political flashpoint.

Innovation Ohio reported in May that Ramaswamy's personal portfolio spans multiple segments of the data center supply chain, including chipmakers, hardware suppliers, real estate developers, and data center operators, as well as AI and cryptocurrency firms dependent on data centers.

This suggests that if Ohio significantly expands data center construction, some of Ramaswamy's personal assets could benefit.

Innovation Ohio thus questioned whether Ramaswamy, if elected governor, would face conflicts of interest, given his regulatory authority over data center industries and related power, land, and utility policies.

Ramaswamy's team positions the policy as 'Ohioans First'—not simply promoting data center expansion, but ensuring companies provide measurable economic returns to residents in exchange for community resources.

Ackman's investment portfolio also aligns with AI data center growth. Pershing Square holds stakes in Amazon (AMZN-US), Alphabet (GOOGL-US), Meta Platforms (META-US), and Microsoft (MSFT-US)—all major players in U.S. AI data center and cloud infrastructure investment.

Thus, Ackman's support for Ramaswamy's policy reflects not only political alignment but also his portfolio's long-term outlook on AI infrastructure growth.

Major tech firms have significantly increased AI capital expenditures, making data centers a key investment theme in the U.S. economy and financial markets. Yet, the electricity and water costs borne by local communities are increasingly becoming political issues.

Recently, calls to limit data center construction have emerged in multiple U.S. states. Texas Governor Greg Abbott has demanded stricter reviews of data center projects; Florida, Pennsylvania, and Nebraska are discussing restrictions on tax incentives or pausing new construction.

This bipartisan backlash shows that AI data centers have shifted from a tech industry issue to a public policy concern. Supporters cite investment, construction jobs, tax revenue, and tech clusters; opponents worry that big tech enjoys tax breaks while ordinary residents bear grid, water, and land costs.

Ohio is particularly watched, having become a key market for U.S. data center construction. Rapid AI and cloud infrastructure investment in cities like Columbus has made power demand and grid capacity pressing issues for local governments.

However, whether data centers necessarily raise household electricity prices remains debated. A recent study analyzing data from 2015 to 2024 suggests that data centers do not always directly increase local electricity rates.