How the midterm election results could affect the economy, markets and AI boom
The article examines how the 2026 midterm election results could affect markets, energy prices, trade policy and artificial intelligence investment. It notes that candidates including Texas Gov.-elect Gina Hinojosa and Senate candidate James Talarico advocated stronger data center regulation, including a moratorium on new approvals and limits on energy, water and infrastructure use.
The 2026 midterm election results could influence U.S. financial markets, trade policy, energy costs and government regulation, according to economist Gerald Cohen of UNC's Kenan Institute. Markets initially rallied after Democrats won control of both chambers of Congress, although some gains later receded.
The article highlights potential consequences for data center construction and the AI-driven economy. Texas Gov.-elect Gina Hinojosa campaigned for a moratorium on new data center approvals, while Senate candidate James Talarico proposed tighter controls on the industry's energy, water and infrastructure demands. Cohen said a slowdown could reduce economic growth tied to AI investment, but could also ease pressure on resources and redirect investment to other sectors.