Osegi
Business·2 min read

Data Centers Lose Big in the Midterms as Voters Back Limits

Voters backed candidates and ballot measures that restrict data center growth, a setback for the AI industry's build-out. NBC polling found 76% opposed local facilities.

Aerial view of a large data center complex beside power lines, representing local opposition to data center development.
Image: The Verge

Data center developers face a tougher building environment after voters across the US elected candidates who favor moratoriums and approved ballot measures that make expansion harder, a blow to a central pillar of the AI industry.

In NBC News polling on Election Day, 76 percent of voters said they opposed data centers in their communities. Of 45 local ballot measures that put the question directly to voters, 33 had results that will restrict development as of Wednesday morning, according to a tracker compiled by Redbud Consulting. Wells, Maine, backed a 180-day moratorium on large data centers. Several Ohio cities voted to ban facilities above 25MW, and El Dorado, Kansas, approved a 10-year ban on those with a peak load above 10MW.

Candidates who backed pauses won

It is hard to tie any single result to data center backlash. Still, several upset winners support moratoriums. In Texas, Democrat Gina Hinojosa won the governorship from Republican Greg Abbott on a platform that includes a statewide moratorium. In Michigan, Abdul El-Sayed won a Senate seat after calling for a pause on new projects until they can be built safely and with federal protections. In Maine, Troy Jackson ousted Sen. Susan Collins; he backs a state moratorium, and the legislature had passed what would have been the first such law before the governor vetoed it.

In Ohio, Sherrod Brown won back his Senate seat from Jon Husted, whom he had called "the face of data centers." Brown has not demanded a moratorium but says developers should not get tax breaks or approval without local input.

Not a clean sweep

Some candidates with milder positions also won. Republican Byron Donalds took the Florida governorship while opposing an outright ban, though his margin was narrower than expected. Iowa's Rob Sand opposed a moratorium his challenger favored. In Pennsylvania, Josh Shapiro kept his seat after barring nondisclosure agreements for data center projects and taking AI data center proposals off the fast track.

Even these winners had to address the issue on the campaign trail, and they are likely to face continued pressure to set at least some guardrails, from ratepayer protections to tax-break limits and local control.

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Tags:data centersmidtermsai infrastructuremoratoriumballot measurespolicy

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