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"Being handmaiden to the AI tech lords in strong-arming local communities to accept AI data centers... is about as low as it goes," wrote one critic.
A former Democratic senator once known for a purported "independent streak" now says she is working "hand in glove" with the Trump administration to force communities to allow the construction of energy-devouring artificial intelligence data centers.
As reported by YourValley.Net, former Sen. Kyrsten Sinema (I-Ariz.) recently attended a planning and zoning commission meeting in the city of Chandler, Arizona, in which she warned local officials that a massive data center would be built in their community whether they wanted it or not.
According to YourValley.Net, Sinema was at the meeting to advocate for plans created by New York-based developer Active Infrastructure to construct a massive 420,000-square foot data center in the city.
A video of the meeting posted on X by 12News reporter Brahm Resnik shows Sinema telling local officials that if they did not act to approve the data center, then the Trump administration would simply impose it on them without seeking their input.
"The AI action plan, set out by the Trump administration, says very clearly that we must continue to proliferate AI and AI data centers throughout the country," she said. "So federal preemption is coming. Chandler right now has the opportunity to determine how and when these new, innovative AI data centers will be built."
She then added that "when federal preemption comes, we'll no longer have that privilege, it will just occur, and it will occur in the manner in which they want it."
Former US Sen. Kyrsten Sinema lobbies for data center developer at Chandler AZ Plan Commission. Says she's working "hand in glove" w Trump Admin & warns city to embrace DCs or face federal intervention. City Council vote on Sinema's DC scheduled for Nov. 13. pic.twitter.com/KulHg594gj
— Brahm Resnik (@brahmresnik) October 24, 2025
The construction of AI data centers has provoked outrage throughout the US, as local residents have complained about the data centers consuming massive amounts of resources—increasing monthly electricity bills and, in some cases, disrupting local water supplies.
Mike Jacobs, a senior energy manager at the Union of Concerned Scientists, last month released an analysis estimating that data centers had added billions of dollars to Americans’ electric bills across seven different states in recent years. In Virginia alone, for instance, Jacobs found that household electric bills had subsidized data center transmission costs to the tune of $1.9 billion in 2024.
Some progressive critics were quick to denounce Sinema lobbying for AI data centers, as it confirmed the view they held during her Senate career that she shilled for corporate interests.
"[I] knew Sinema would show up in some super-scummy corporate role," remarked journalist Nathan Newman in a post on Bluesky. "But being handmaiden to the AI tech lords in strong-arming local communities to accept AI data centers—or face the wrath of the Trump administration—is about as low as it goes."
Rep. Ro Khanna (D-Calif.) argued that Sinema's comments at the meeting show why "we need a lifetime ban on members of Congress lobbying."
Ian Carrillo, a sociologist at the University of Oklahoma, expressed horror at the way major tech companies are deploying people such as Sinema to bully communities into accepting their plans.
"The AI bubble can't pop soon enough," he wrote. "These data centers are rolled out in the most anti-democratic ways, involving NDAs, shadow companies and, according to Sinema, federal preemption."
Current Affairs editor Nathan Robinson condemned the former senator for "openly threatening localities."
Sinema's message to Chandler residents, said Robinson, was "Approve resource-sucking AI data centers in your communities, or I will work with the Trump administration to inflict data centers on you without consent, regardless of the harm that occursIn a move likely fraught with major implications for worker rights during the impending second administration of Republican President-elect Donald Trump, Democratic-turned-Independent U.S. Sens. Joe Manchin and Kyrsten Sinema on Wednesday blocked Democrat Lauren McFerran's bid for a second term on the National Labor Relations Board.
With every Republican senator except Sen. Roger Marshall of Kansas voting against President Joe Biden's nomination of McFerran for a new five-year term, the fate of the woman who has led the agency since 2021 was up to Manchin and Sinema—who, as More Perfect Union founder and executive director Faiz Shakir put it on social media, "consistently spoiled the story of 'what could have been'" by years of fighting to thwart their own former party's agenda.
Sinema struck first, her "no" vote on McFerran grinding the confirmation tally to a 49-49 tie. Manchin, who showed up later, cast the decisive vote, negating speculation that Vice President Kamala Harris, the Senate president who lost the presidential contest to Trump last month, would break the stalemate.
"It is deeply disappointing, a direct attack on working people, and incredibly troubling that this highly qualified nominee—with a proven track record of protecting worker rights—did not have the votes," lamented Senate Majority Leader Chuck Schumer (D-N.Y.).
Chris Jackson, a former Democratic Lawrence County, Tennessee commissioner and longtime labor advocate, called Manchin and Sinema's votes "a crushing blow to the labor agenda."
"By casting decisive NO votes against President Biden's NLRB nominee, they've guaranteed Democrats will lose control of the national labor board until at least 2026," Jackson said. "Their votes effectively hand Donald Trump the keys to the board the moment he takes office again. This is a betrayal of working families—and a gift to corporate interests, which is par for the course for these two."
Sara Nelson, president of the Association of Flight Attendants-CWA union, said on social media that while "Manchin and Sinema are responsible for killing voting rights, worker rights, women's rights, LGBTQ rights, childcare, vision, and dental for seniors, and an economy built for the people," the two obstructionist senators "are not the story."
"Don't bury the lede," implored Nelson. "The entire GOP has relentlessly fought against anything good for the vast majority of the people of this country. The GOP shows once again their total disdain for their constituents."
"But they better watch what they do in implementing their plans to make it worse," she warned. "These laws are set up to mostly protect corporations and getting rid of the last pathetic bits of worker rights under the law will simply lead to more disruption and CHAOS."
Trump's first term saw relentless attacks on workers' rights. Critics fear a second Trump administration—whose officials and agenda are steeped in the anti-worker Project 2025—will roll back gains achieved under Biden and work to weaken the right to organize, water down workplace health and safety rules, and strip overtime pay, to name but a handful of GOP wish-list items.
The latest votes by Manchin and Sinema—who are both leaving Congress after this term—sparked widespread outrage among workers' rights defenders on social media, with one account on X, formerly known as Twitter, posting: "Manchin is geriatric and Sinema has a long fruitful career ahead of her in a consulting firm that advocates child slave labor, but at least they kicked the working class in the teeth one last time. Nothing to do now but hope there's a hell."
The financiers are spending big on candidates that will preserve the carried interest tax deduction, which allows them to pay a lower 23.8% tax rate on the capital gains passed on to them as compensation rather than the top income tax rate of up to 40.8%.
Eleven of the top 50 individual contributors to political campaigns this election cycle work in the finance industry—specifically in private equity—and are betting big on congressional and presidential candidates who will protect one very special federal tax break worth billions of dollars to them: the carried interest loophole.
So far this election cycle, these 11 private equity billionaires have already contributed more than double the amount that more than 147 private equity firms pumped into federal elections in all of the 2016 election cycle. Private equity—which largely entails rich investors buying and selling companies—is only a part of a larger finance industry that includes hedge funds, securities firms, banks, and investment companies and managers.
This loophole, of course, is not the only tax perk that private equity firms favor. They also push to keep the tax rate on capital gains much lower than the tax rate on ordinary income.
Finance—securities and investments—tops the list of industries giving the most money to date this round, with more than $1 billion in contributions to candidates, parties, and PACs, according to the nonpartisan political funding tracker Open Secrets.
The 11 private equity leaders have contributed more than $223 million to congressional and presidential candidates and the super PACs that support them, accounting for almost 20% of all money contributed by thousands of companies in the finance sector, according to Open Secrets data. During the 2016 election cycle, the Center for Media and Democracy (CMD) reported that the 147 private equity firms it analyzed contributed $92 million to candidates and super PACs.
The carried interest tax deduction allows private equity investment managers to pay a lower 23.8% tax rate on the capital gains passed on to them as compensation rather than the top income tax rate of up to 40.8% they would pay on the same amount if it were considered wage or salary income.
“Carried interest is a form of compensation paid to investment executives like private equity, hedge fund and venture capital managers,” CNBC explains. “The managers receive a share of the fund’s profits—typically 20% of the total—which is divided among them proportionally. The profit is called carried interest, and is also known as ‘carry’ or ‘profits interest.’”
The $223-million investment these 11 private equity billionaires are making in campaign contributions in hopes of keeping the loophole intact will save the industry an estimated $14 billion in taxes over 10 years, as Senate Democrats pointed out in 2022 when they were forced to let go of legislation to get rid of it.
This loophole, of course, is not the only tax perk that private equity firms favor. They also push to keep the tax rate on capital gains much lower than the tax rate on ordinary income. And some private equity managers have other public policy interests, like billionaire Jeffery Yass, the largest individual donor this election cycle, who gives millions of dollars to school choice groups and other conservative causes.
On April 15, 2024, Sen. Tammy Baldwin (D-Wis.) introduced the Carried Interest Fairness Act (S. 4123), which she co-sponsored with 14 other senators, in order to eliminate the tax loophole, something that Democrats have long sought to fix. The proposed legislation treats the buying and selling of companies as ordinary income if that is a firm’s primary business. “By closing the carried interest loophole, we’ll make our tax code fairer for working families, cut the deficit, and ensure that those at the top of the food chain aren’t exploiting the system to further enrich themselves,” Baldwin said in a press release.
While 90% of the private equity contributions made so far this election cycle have gone to Republicans or the PACs that support them, not every Democrat is opposed to eliminating the loophole.
Before Sen. Kyrsten Sinema (I-Ariz.) left the party to become an independent in 2022, she “courted private equity titans and received the maximum allowed amount from the PACs of leading private equity firms such as The Carlyle Group, along with the industry’s trade organization, the American Investment Council (AIC),” CMD reported.
Private equity billionaires have dramatically increased their spending since Sinema decided not to run for reelection this year.
In 2017, as part of then-President Donald Trump’s Tax Cuts and Jobs Act, the length of time needed to trigger the long-term capital gains tax was raised from one year to three just for private equity. The loophole itself was kept in the bill because of fierce industry lobbying, even though Trump groused that those who took the tax break were “getting away with murder.”
Former President Barack Obama and President Joe Biden both pledged to get rid of the unfair tax loophole. Obama never followed through, and Biden dropped the loophole fix from the Inflation Reduction Act due to opposition from Sinema. Anti-tax zealot Grover Norquist compares the situation to a dog chasing a bus. “You didn’t mean to catch the bus, you meant to whine about the bus,” he famously said.
Vice President Kamala Harris, the presumptive Democratic nominee for president, has made few comments so far on private equity and has not yet expressed her views about the carried interest loophole.