Prior to announcing his Senate candidacy in April 2023, Bernie Moreno was a political no name. A former car salesman in the Cleveland area, his only prior experience in politics was a losing bid for Ohio’s other Senate seat in 2022.

Moreno has since accomplished the once unthinkable. 

On Nov. 5, as part of the election that swept Donald Trump back into the White House, Moreno defeated Democratic incumbent Senator Sherrod Brown, who was first elected to the House in 1992, before winning his Senate seat in 2006 and chairing the powerful Banking Committee since 2021.

Moreno’s rise from unsung Ohio businessman to prominent political leader was no accident. His campaign was backed by $40 million from the cryptocurrency industry as part of a highly targeted effort to get friendly candidates elected and, perhaps more importantly, its critics removed. Moreno’s victory was one of the Senate seats Republicans flipped to take control of the chamber.  

In total, crypto-related PACs and other groups tied to the industry reeled in over $245 million, according to Federal Election Commission data. Crypto accounted for nearly half of all corporate dollars that flowed into the election, according to nonprofit watchdog Public Citizen. Advocacy group Stand With Crypto Alliance, which Coinbase launched last year, developed a grading system for House and Senate races across the country as a way to help determine where money should be spent.

Crypto execs, investors and evangelists saw the election as existential to an industry that spent the past four years simultaneously trying to grow up while being repeatedly beaten down. Nearly 300 pro-crypto lawmakers will take seats in the House and Senate, according to Stand With Crypto, giving the sector unprecedented influence over the legislative agenda.

The crypto political lobby worked so well this cycle because it made something complicated, like campaign finance, simple: Raise a ton of cash from a handful of donors and buy ad space in battleground states to either support candidates who back crypto or smear the candidates who don’t. It also required thinking of candidates as a bit of a binary: They were either with the industry or against it.

Crypto companies and their executives mobilized rapidly, and they successfully figured out how to deploy their cash through a sophisticated ad machine across the country. They also took cues from what big tech got wrong. Rather than spending hundreds of millions of dollars on lobbying legislators post-election, the crypto industry invested in targeting their opponents ahead of the election so they wouldn’t have to deal with them at all the next few years.

For over a year, Moreno was grilled by Silicon Valley heavy hitters like Marc Andreessen, Ben Horowitz and David Sacks about blockchain technology, digital asset policy and the shifting terrain of global finance.

“They didn’t just jump in head first,” Moreno said, describing the scores of meetings that stretched back to his run in the primary. “We had to build a lot of trust.”

Moreno also met with Coinbase co-founders Brian Armstrong and Fred Ehrsam as well as policy chief Faryar Shirzad. Armstrong and Ehrsam did not respond to CNBC’s request, through Coinbase, for comment about the meetings.

Coinbase is the largest digital asset exchange in the U.S. and has been battling the Securities and Exchange Commission in court for over a year. The company was the crypto kingmaker in the 2024 cycle, giving more than $75 million to a super PAC called Fairshake. It was one of the top spending committees of any industry this cycle and exclusively gave to pro-crypto candidates running for Congress. Fairshake’s candidates won virtually every race that it funded in the general election.

“Being anti-crypto is simply bad politics,” Coinbase’s Armstrong wrote on X following Moreno’s victory. 

As the price of bitcoin has multiplied by about sixfold in the past four years, SEC Chairman Gary Gensler has taken major crypto players like Coinbase and Ripple to court for allegedly selling unregistered securities and has avoided working with companies to develop new specialized regulations.

Meanwhile, Sen. Brown sided with the expressly anti-crypto Sen. Elizabeth Warren, D-Mass., in targeting crypto for allegedly funding terrorist organizations, including Hamas. Brown became more vocal in calling for crackdowns of the industry after the failure of crypto exchange FTX in late 2022. 

As FTX was spiraling into bankruptcy, Brown on Nov. 10 retweeted a post from the Senate Banking Committee calling the event “a loud warning bell that cryptocurrencies can fail” and can “have a ripple effect on consumers and other parts of our financial system.”

The bipartisan Fairshake won all but three races in the general election, spending big on Republicans and Democrats gunning for key seats. Protect Progress, a PAC affiliated with Fairshake, gave more than $10 million apiece to Democratic candidates for the Senate in Arizona and Michigan. Both won. Defend American Jobs, another one of Fairshake’s affiliated PACs, spent more than $3 million to support Republican Jim Justice in West Virginia, who will take the former seat of Democratic Sen. Joe Manchin when the new session gets underway in 2025.

In California, Democratic Rep. Katie Porter lost a Senate primary after Fairshake spent more than $10 million on ads against her. 

“I was, like, ‘What the heck is Fairshake?'” Porter told The New Yorker.

Brown told Politico he hasn’t ruled out running for Vice President-elect JD Vance’s open Senate seat in Ohio, which will be filled by special election in 2026.

Moreno benefited from branding himself as the “change” candidate while Brown “became a defender of the status quo,” Shirzad said.

“Crypto thematically is a change issue,” Shirzad said. “It appeals to not only a younger demographic, but it also appeals to voters who want to change.”

Fairshake declined to comment on whether it would spend to block another Brown Senate run, but the super PAC has already raised $78 million for the 2026 midterms.

“We stuck to our core strategy from Day 1, supported pro-crypto candidates and opposed those who played politics with jobs and innovation, and won,” Fairshake told CNBC in a statement.

The past two election cycles featured spending from the now-bankrupt crypto exchange FTX and its founder Sam Bankman-Fried, who was sentenced to 25 years in prison in March for stealing more than $8 billion worth of customer money through FTX. 

This year’s contributor list was more robust but saw large sums of funding come from companies that have been at odds with SEC Chair Gensler for years. That includes Coinbase and blockchain giant Ripple Labs. Prominent venture fund Andreessen Horowitz, which has a large portfolio of crypto companies, was one of the other primary contributors.

A lot of crypto’s big names also gave significantly in 2024. 

FEC filings show Cameron and Tyler Winklevoss were among the largest individual crypto donors this election cycle, giving a combined $10.1 million. Top executives from Ripple contributed millions, led by billionaire founder Chris Larsen, who gave around $12 million this cycle.

Coinbase CEO Armstrong gave over $1.3 million to a mix of PACs including Fairshake and JD Vance for Senate Inc. He also gave directly to Democrats and Republicans running for House and Senate seats. Coinbase Chief Legal Officer Paul Grewal attended at least two Trump fundraisers, including one in Nashville, Tennessee, on the sidelines of the biggest bitcoin event of the year.

Kraken Chairman Jesse Powell donated over $1 million to the Trump campaign.

Other individual crypto contributors include ex-Bitfinex strategy chief Phil Potter (over $1.6 million), Multicoin Capital’s Kyle Samani ($878,600), Paradigm co-founder Fred Ehrsam ($735,400), Union Square Ventures partner Fred Wilson ($1,4 million), Paxos CEO Charles Cascarilla ($198,500), BitGo CEO Mike Belshe ($119,825), Solana co-founder Anatoly Yakovenko ($67,100), and Xapo Bank founder Wences Casares ($374,899).

This week, Armstrong reportedly met with the president-elect to discuss appointments. Within a day, conversations swirled about the potential for the White House’s first crypto czar. By the end of the week, SEC Chair and longtime crypto foe Gensler, whose term doesn’t expire until June 2026, announced he was retiring on inauguration day.

One of Trump’s promises to his crypto fans on the campaign was that he would fire the SEC head and choose crypto-friendly regulators if elected. Gensler may have taken a look at the pressure that faces him across Washington and decided it just wasn’t worth trying to stick it out.

“Welcome to America’s most pro-crypto Congress ever,” Armstrong wrote on X on Nov. 5.

The power needs of artificial intelligence and cloud computing are growing so large that individual data center campuses could soon use more electricity than some cities, and even entire U.S. states, according to companies developing the facilities.

The electricity consumption of data centers has exploded along with their increasingly critical role in the economy in the past 10 years, housing servers that power the applications businesses and consumers rely on for daily tasks.

Now, with the advent of artificial intelligence, data centers are growing so large that finding enough power to drive them and enough suitable land to house them will become increasingly difficult, the developers say. The facilities could increasingly demand a gigawatt or more of power — one billion watts — or about twice the residential electricity consumption of the Pittsburgh area last year.

Technology companies are in a “race of a lifetime to global dominance” in artificial intelligence, said Ali Fenn, president of Lancium, a company that secures land and power for data centers in Texas. “It’s frankly about national security and economic security,” she said. “They’re going to keep spending” because there’s no more profitable place to deploy capital.

Renewable energy alone won’t be sufficient to meet their power needs. Natural gas will have to play a role, developers say, which will slow progress toward meeting carbon dioxide emissions targets.

(See here for which stocks are helping to fix the nation’s power grid.)

Regardless of where the power comes from, data centers are now at a scale where they have started “tapping out against the existing utility infrastructure,” said Nat Sahlstrom, chief energy officer at Tract, a Denver-based company that secures land, infrastructure and power resources for such facilities.

And “the funnel of available of land in this country that’s industrial zone land that can fit the data center use case — it’s becoming more and more constrained,” said Sahlstrom, who previously led Amazon’s energy, water and sustainability teams.

Beyond Virginia

As land and power grow more limited, data centers are expanding into new markets outside the long-established global hub in northern Virginia, Sahlstrom said. The electric grid that serves Virginia is facing looming reliability problems. Power demand is expected to surge, while supply is falling due to the retirement of coal- and some natural gas-powered plants.

Tract, for example, has assembled more than 23,000 acres of land for data center development across the U.S., with large holdings in Maricopa County, Arizona — home to Phoenix — and Storey County, Nevada, near Reno.

Tract recently bought almost 2,100 acres in Buckeye, Arizona with plans to develop the land into one of the largest data center campuses in the country. The privately-held company is working with utilities to secure up to 1.8 gigawatts of power for the site to support as many as 40 individual data centers.

For context, a data center campus with peak demand of one gigawatt is roughly equivalent to the average annual consumption of about 700,000 homes, or a city of around 1.8 million people, according to a CNBC analysis using data from the Department of Energy and Census Bureau.

A data center campus that size would use more power in one year than retail electric sales in Alaska, Rhode Island or Vermont, according to Department of Energy data.

A gigawatt-size data center campus running at even the lower end of peak demand is still roughly comparable to about 330,000 households, or a city of more than 800,000 people — about the population of San Francisco.

The average size of individual data centers operated by the major tech companies is currently around 40 megawatts, but a growing pipeline of campuses of 250 megawatts or more is coming, according to data from the Boston Consulting Group.

The U.S. is expected see a growing number of data center campuses of 500 megawatts or more, equivalent to half a gigawatt, in the 2030s through mid-2040s, according to the BCG data. Facilities of that size are comparable to about 350,000 homes, according to CNBC’s analysis.

“Certainly the average size of the data centers is increasing at a rapid pace from now to 2030,” said Vivian Lee, managing director and partner at BCG.

Houston-based Lancium set up shop in 2017 with the idea of bringing large electric loads closer to abundant renewable energy resources in west and central Texas, said Fenn, the company’s president. Originally focused on cryptocurrency mining, Lancium later shifted its focus to providing power for artificial intelligence with the advent of ChatGPT in late 2022.

Today, Lancium has five data center campuses in various stages of development. A 1,000-acre campus in Abilene is expected to open in the first quarter of 2025 with 250 megawatts of power that will ramp up to 1.2 gigawatts in 2026.

The minimum power requirement for Lancium’s data center customers is now a gigawatt, and future plans involve scaling them up to between three and five gigawatts, Fenn said.

For data centers that size, developers have to ensure that electricity costs in neighboring communities don’t rise as a consequence and that grid reliability is maintained, Fenn said. Pairing such facilities with new power generation is crucial, she said.

“The data centers have to partner with utilities, the system operators, the communities, to really establish that these things are assets to the grid and not liabilities to the grid,” Fenn said. “Nobody’s going to keep approving” such developments if they push up residential and commercial electric rates.

Data center campuses run by publicly-traded Equinix are rising to several hundred megawatts from 100- to 200 megawatts, said Jon Lin, general manager for data center services at the company. Equinix is one of the largest data center operators in the world with 260 facilities spread across 72 metropolitan areas in the U.S. and abroad.

Developers prefer carbon-free renewable energy, but they also see solar and wind alone as unable to meet current demand due to their reliance on changing weather conditions.

Some of the most critical workloads for the world’s economy, such as financial exchanges, run at data centers operated by Equinix, Lin said. Equinix’s data centers are online more than 99% of the time and outages are out of the question, the executive said.

“The firmness of the power is still incredibly important for these data centers, and so doing that solely off of local renewables is candidly just not an option,” Lin said.

The major technology companies are some of the largest purchasers of renewable power in the U.S., but they are increasingly turning to nuclear in search of more reliable sources of electricity. Microsoft is supporting the restart of the Three Mile Island nuclear plant outside Harrisburg, Pennsylvania through a power purchase agreement. Amazon and Alphabet’s Google are investing in small nuclear reactors.

But building new nuclear reactors is expensive and fraught with delays. Two new reactors in Georgia recently came online years behind schedule and billions of dollars over budget.

In the short run, natural gas will fuel much of the power demanded by data centers, Lancium’s Fenn said. Gas is the main, short-term power source providing the reliability these facilities require, Boston Consulting Group’s Lee said.

Investments could be made in new gas generation that adds carbon capture and battery storage technology over time to mitigate the environmental impact, Lee said.

The industry hopes that gas demand will taper off as renewables expand, battery storage costs come down and AI helps data centers operate more efficiently, Fenn said. But in the near term, there’s no question that data center expansion is disrupting technology companies’ emissions targets, she said.

“Hopefully, it’s a short term side step,” Fenn said of stepped-up natural gas usage. “What I’m seeing amongst our data center partners, our hyperscale conversations, is we cannot let this have an adverse effect on the environmental goals.”

Note: CNBC analysis assumes a data center campus is continuously utilizing 85% of its peak demand of a gigawatt throughout the year, for a total consumption of 7.4 billion kilowatt-hours. Analysis uses national averages for household electricity consumption from EIA and household size from Census Bureau.