Democratic victories in the US midterm elections have sparked concerns regarding the future of artificial intelligence infrastructure, as candidates in key states pledged to restrict data center development. In Texas, a state expected to account for approximately 25 percent of planned US data center capacity by 2030, Democratic gubernatorial winner Gina Hinojosa has called for a moratorium on new construction until legal safeguards are established. Hinojosa has also proposed requirements for unionized labor, the elimination of non-disclosure agreements, and proof that the buildout will not increase household water or power bills.
Altimeter Capital analyst Brad Gerstner warned that this political shift could delay 10-15 GW of data center projects currently slated for 2027. Gerstner noted that the consensus forecast for 2027 predicts 43 GW of new capacity coming online, a figure that exceeds the total cumulative compute currently online in the United States. The analyst suggested that the political landscape could result in only half of that expected capacity actually being built.
In Ohio, voters rejected data center expansion through 15 municipal bans or restrictions, impacting planned investments from Meta and Amazon Web Services. The companies had previously announced intentions to spend $1 billion and $2 billion respectively on facilities in the state. These developments follow a 2025 Pew Research Center poll indicating that more than half of Americans are more fearful than excited about AI, citing concerns over energy consumption, noise, pollution, and land use.
Market reactions were immediate following the election results, with Nvidia shares falling 2% and CoreWeave shares dropping 6% in after-hours trading. Elon Musk, who contributed $474 million to Republican causes during the midterms, reacted to the results on X by stating, "Data centers in space looking pretty appealing right now."
While former President Donald Trump has previously dismissed AI safety concerns and pushback against data centers as a "hoax," local opposition continues to disrupt large-scale projects. Data Center Watch reported that at least 45 data center projects were disrupted in the second half of 2026 due to local opposition.
