Artificial intelligence data centres went into the United States midterm elections as one of the most argued-over issues in American politics. They came out of them as one of the clearest losers, after voters rewarded candidates who promised to clamp down on the energy-hungry server farms and backed local measures to restrict them.

The backlash was woven into the platforms of many of the Democrats who swept to victory on 3 November, including those who ended long Republican control of the governorships in Texas, Ohio, Georgia, Nevada and Iowa, all states where data centre building has surged. Democrats also flipped at least five governors' offices and took full control of state governments in five more states: Wisconsin, Minnesota, Pennsylvania, Nevada and Michigan.

According to data from AdImpact, campaigns spent more than $380 million on television advertising that mentioned data centres during the cycle, with Democrats outspending Republicans on the subject by more than three to one. Data Center Watch, a project of the AI security consultancy 10a Labs, tracked the winning candidates and found that the vast majority had expressed support for stronger regulation or even a moratorium.

Among governors, 32 of the 34 victorious candidates in races called by the Associated Press support stronger regulation or restrictions, the group said. Twelve of the 34 support bans or moratoriums.

Texas was the test case

Nowhere was the shift clearer than in Texas, which is poised to overtake northern Virginia as the largest data centre market in the world by 2030, according to the commercial property firm JLL. Democrat Gina Hinojosa defeated Republican Governor Greg Abbott, who had once promoted Texas as the epicentre of AI development before trying to rein the industry in late in the campaign. Morgan Stanley described her election as the most important result of the night for data centre development.

Hinojosa has said she would block a permit for a data centre if it was not a good deal for Texans or if residents had not been given a say. In the same election, Clayton Tucker became the first Democrat elected as the state's agriculture commissioner since 1986, and said his pledge to fight data centre development was critical to his victory. Ranchers, he said, feared the projects posed an existential threat to dwindling water supplies in the drought-stricken state.

Ohio delivered a similar warning. Democrat Dr Amy Acton was elected governor after pledging to block a data centre project unless it met certain standards, and Morgan Stanley said her victory created significant risk of project delays in the state. In Wisconsin, Governor-elect David Crowley changed his position during the campaign under pressure from his Republican opponent, moving from opposing a moratorium to supporting one, along with abolishing the state's sales tax exemption for data centre operators and developers.

Towns voted to say no

The resistance was just as strong at local level. An analysis by the polling firm Redbud Consulting tracked 47 referendums in 44 municipalities across 12 states, including 21 in Ohio alone. Restrictions on data centres were approved in 44 of the 45 contests where counting was complete.

The Associated Press voter poll found that about three-quarters of American voters oppose the construction of a new data centre in their community, in Republican and Democratic states alike. About a quarter said artificial intelligence data centres were crucial to their vote for Congress, well below the shares who named government corruption or the cost of living. Exit polls cited by USA Today found that 56 per cent of voters said AI and data centres were a crucial or major factor in their congressional vote, and about 76 per cent said they would oppose new data centres in their communities.

What the industry does next

The industry has begun to respond. OpenAI published a framework setting out new commitments to the communities where it builds data centres, and called on policymakers to write clear rules for how the industry builds. The Data Center Coalition said developers needed to keep building trust with public officials and communities.

Financial markets have already taken fright: the Nasdaq sank 11 per cent below its all-time high on Thursday amid worries that data centre construction may slow as borrowing becomes costlier. Morgan Stanley warned that decisive Democratic victories carried greater expectations for restrictions, and that new state rules could split the country into areas open to new data centres and areas closed to them.

There are limits to what the election changed. Data centre regulation was not on most midterm ballots, and it was not among the top issues for most voters. President Donald Trump, perhaps the industry's biggest champion, could also stall any federal crackdown. But the direction of travel at state level is now unmistakable.

[Source: Associated Press](https://gray-wpta-prod.gtv-cdn.com/2026/11/06/ai-data-centers-took-beating-midterm-elections-reckoning-may-be-ahead-tech-giants/) | [Source: USA Today](https://www.usatoday.com/story/news/nation/2026/11/04/data-centers-midterm-elections/92611809007/)