The November 3 midterms turned resistance to data center expansion into a more prominent political issue, with candidates who opposed rapid construction winning races in several states. Democrats’ new control of Congress could also strengthen efforts to regulate where facilities are built and how their costs affect nearby communities, although Republicans will retain the White House.
An NBC exit poll found that more than half of respondents thought artificial intelligence would do more harm than good, while nearly 80% opposed a data center in their neighborhood. Almost 60% said data centers were a major or crucial factor in their vote. Color of Change president and CEO Nadine Smith described the election as a referendum on “who this economy is built for,” pointing to concerns including pollution from gas turbines powering xAI’s Memphis facility.
The pushback was visible in Ohio, where OpenAI has considered a $500 billion data center project with more than $100 billion in financing from Nvidia. A county where Meta had planned a 700,000-square-foot facility approved a data center ban, while local communities across the state voted overwhelmingly against measures supporting expansion. Candidates who opposed the rapid buildout also won seats in Texas, Maine, Michigan, Nevada, Georgia and South Carolina.
Analysts cited in the report expect the results could lead to construction pauses and requirements for data center operators to cover power-grid upgrades rather than pass those costs on to local communities. Goldman Sachs predicts that Democratic gains could delay projects in Georgia and Texas. In Ohio, Morgan Stanley analysts have identified governor-elect Amy Acton as a potential risk to data center development.
Democratic control of Congress may improve the prospects of legislation introduced earlier this year by Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez. Their proposal would pause new data center construction nationwide until Congress establishes safeguards addressing electricity costs, environmental impacts and community approval. The measure could still face a presidential veto. A separate bill, the GRID Savings Act, proposed by New Mexico Sen. Martin Heinrich, would prevent grid infrastructure costs tied to large AI data center projects from being passed on to communities.
Environmental rules, land rights and local planning are also likely to shape the debate. Maia Woluchem, program director at the nonprofit Data & Society, said state and local action could continue regardless of federal policy. Texas governor-elect Gina Hinojosa, for example, supports a statewide moratorium. Both Hinojosa and Gov. Greg Abbott called for some limits, though opposition to data centers was a central part of Hinojosa’s campaign.
A nationwide freeze remains contested even among Democrats, Smith said, citing concerns that it could slow AI development and weaken national security. She also expects technology lobbyists to press lawmakers as the debate advances.
The opposition reflects broader concerns about AI and corporate influence, as well as the facilities themselves. Residents have raised questions about pollution, electricity bills and whether communities have a meaningful voice in projects. The report points to outdated zoning rules and nondisclosure agreements imposed on some local officials as factors that have fueled public frustration. While companies cite jobs and community programs, many residents remain concerned that the benefits will go to a small number of wealthy businesses while local costs rise.
Sources: TechCrunch.