AI data centers took a beating in the midterms. A reckoning may be ahead for tech giants
The midterm elections produced gains for candidates who favor tighter regulation or moratoriums on AI data centers, citing their effects on electricity prices, water supplies and local communities. Texas and other major data center markets could face permitting delays and new requirements, while OpenAI called for clearer rules and stronger community commitments.
Candidates who campaigned against or expressed skepticism of AI data centers won governorships and other offices across several major data center states, including Texas, Ohio, Wisconsin, Georgia, Nevada and Iowa. Many have called for stronger regulation, additional disclosures about energy and water use, community input requirements, protections for ratepayers and taxpayers, or temporary moratoriums. Texas Agriculture Commissioner-elect Clayton Tucker said concerns about dwindling water supplies were central to his campaign, while Texas Gov.-elect Gina Hinojosa and Ohio Gov.-elect Amy Acton have indicated they could block projects that do not meet public-interest standards.
Wisconsin Gov.-elect David Crowley said he is considering a moratorium and changes to tax incentives for data center operators and developers. OpenAI separately published a framework seeking clearer federal, state and local rules for AI infrastructure, while the Data Center Coalition warned that restrictions could reduce tax revenue and other economic benefits. Analysts said the election results could slow development and divide the country into areas that welcome new data centers and areas that impose restrictions.