Hidden provision in Trump’s flagship bill returns as a Republican political risk
Key Takeaways
- •Democrats are using a tax provision in the Big, Beautiful Bill Act of 2025 that made data centers eligible for opportunity zone incentives as a midterm talking point against Republicans.
- •Opportunity zones were created under the 2017 Tax Cuts and Jobs Act and offer capital-gains tax incentives for investment in designated low-income census tracts.
- •Local opposition to data centers centers on their large electricity and water demands, noise, and buildouts that have outpaced community zoning controls in some areas.
- •House Minority Leader Hakeem Jeffries said nearly every House Republican voted to allow an unfettered data center buildout, while Ways and Means Chairman Jason Smith called that interpretation a 'huge stretch.'
- •Some GOP lawmakers in competitive swing states and districts have joined Democrats in campaigning against data centers.

Opposition to data centers is so widespread that some GOP lawmakers — especially those seeking reelection in competitive swing states and swing districts — are joining Democrats in vigorously campaigning against them. Much of that local backlash has centered on the facilities' large electricity and water demands, noise, and the pace at which the buildout has outstripped community zoning controls in some areas. But according to Politico, Democrats are hoping that a hidden provision in the Big, Beautiful Bill Act of 2025 will make data centers even more of a political liability for Republican candidates in the 2026 midterms.
Politico reporters Kelsey Brugger and Brian Faler wrote, "Voters are in an uproar over data centers — and Democrats are trying to direct anger toward Republicans by pointing to a tax provision buried in the GOP's 'Big, Beautiful Bill.' Of the myriad talking points on this issue that Democrats are preparing (to) deploy heading into the midterms, they this week began alluding to 'opportunity zones' — an initiative designed to boost growth in areas deemed underdeveloped and which, at one point, Republicans had touted as a way to spur the construction of data centers."
Opportunity zones were originally created under the 2017 Tax Cuts and Jobs Act, offering capital-gains tax incentives for investment in designated low-income census tracts; making data centers an explicit eligible use was part of the 2025 law's expansion of the program.
House Minority Leader Hakeem Jeffries (D-New York), who is hoping to become speaker if his party flips the U.S. House of Representatives in November, used that data centers/Big, Beautiful Bill talking point during a news conference on August 31. He told reporters, "Every single House Republican but one or two voted to unleash data centers on the American people in an unfettered fashion."
The following day on the House floor, Rep. Jim McGovern (D-Massachusetts) said, "A year ago, Republicans were bragging about giving tax breaks to Big Tech in order to build data centers. With November on the horizon, some House Republicans are acting as if they did not turbocharge the data center buildout."
House Ways and Means Chairman Jason Smith (R-Missouri) pushed back against the talking point, telling Politico, "Huge stretch. Opportunity zones control, like, everything — from child daycare centers to manufacturers. Can data centers be used in them? Yes. But so can everything else."
Brugger and Faler said Democrats' new "messaging tactic" linking data centers to a "yes" vote on the Big, Beautiful Bill Act "arrives as Republicans are already struggling to sell voters on their 2025 tax law ahead of the midterms."
Simon Wang, an economic mobility specialist, told Politico, "You're seeing an increasing trend of (opportunity zones) being utilized to develop data centers."
Rep. Ro Khanna (D-California), whose district includes Silicon Valley, said, "Trump has made it an issue by saying that he wants data centers reigning everywhere; he's basically saying he doesn't care about local control, he doesn't care about local communities. We can be on the side of local cities, rural communities, factory towns, suburbs — places that don't want Big Tech coming and telling them what to do."