Midterm Results Set to Slow Data Center Growth

Democratic victories in the midterm elections could slow the growth of data centers across the country. ## Election Results And Votes Voters approved 37 ballot measures to restrict data centers by Wednesday afternoon, while only one ballot measure allowed them. Political research firm Redbud Consulting analyzed these votes. The elections also bring in new candidates who promised stricter rules for data centers during their campaigns. A CBS News poll from this summer found that Americans oppose building new data centers in their area by a margin of more than 2-to-1 due to public backlash against the rapid development needed for artificial intelligence. ## Expert Predictions And Texas Impact Stephen Dover, chief market strategist at Franklin Templeton, predicted the results will cause a slowdown in building and bring new rules and costs for developers. Dan Ives, technology analyst at Yorkville Ives & Co., stated the midterm results will clearly slow the planned 800 to 1,000 data centers meant to fuel the AI revolution. Ives highlighted Texas, which holds 25% to 30% of expected data center capacity through 2030. In Texas, Democrat Gina Hinojosa defeated Republican incumbent Greg Abbott and proposed a temporary ban on building data centers during her campaign. Gordon Johnson, CEO of GLJ Research, noted that Abbott had already suspended data center approvals, meaning Hinojosa can easily keep the freeze without needing a new law. Johnson added that Hinojosa's win could stall 13 gigawatts of power capacity in the state. ## Georgia Market And Economic Effects Georgia, the third-largest data center market, also sees major changes after Keisha Lance Bottoms won the gubernatorial race. Bottoms campaigned on pausing new data center construction and plans to sign an executive order for that pause immediately, alongside reviewing tax incentives that spurred development. Economists note that slower construction will not destroy capital spending on AI or harm the wider economy. Dover suggested the slowdown could cool down excessive investment that lacked good returns. Oxford Economics analysts stated in a report that a more restrictive stance will stretch project timelines, which is not necessarily a bad outcome for the macroeconomy. ## Context State-level election outcomes in the United States often shape local infrastructure and technology policies by empowering governors to use executive actions and tax reviews. Data centers require massive amounts of electricity and land, which frequently creates local environmental and resource concerns that draw political opposition.