There is a growing disconnect between the business and politics of data centers.Why it matters: Investors may be whistling past the server racks.Zoom in: The business is booming. Public and private equities are both up and to the right — not only for actual project operators, but also for related energy and vendor plays.The politics have turned sharply negative, often on a bipartisan basis.State of play: New York has put a temporary moratorium on large new data center projects. Pennsylvania and Texas have implemented new regulatory roadblocks that could decrease development.New data center restrictions, including some moratoriums and bans, have been introduced in dozens of other states.Behind the scenes: Data center investors lament the opposition, often framing it as a correctable community education issue. They also believe that much of the political pushback will dissipate after the midterm elections.Even if hostilities harden, they add, there are plenty of states where new projects can be built or existing ones expanded."There is a time horizon problem," explains a Wall Street executive active in the sector. "Capital is underwriting decades of demand while politics runs to the next election. Those two things at times don't reconcile easily. I wouldn't overweight or underweight any one state."Yes, but: Local fights could get nationalized.For example, imagine that Pennsylvania Gov. Josh Shapiro runs for president. Won't he have to argue that what's good for Pennsylvanians is also good for other Americans?Permitting and siting are usually a municipal or state-level issues, but the federal government does have all sorts of levers that could slow the industry's roll.Wall Street and Silicon Valley are not the electorate. "We can't let China win the AI race" isn't a salient statement for most normies, particularly when their electricity bills keep rising.The bottom line: There is more than one way for an AI bubble to burst.