From ABC News · ABC News · · 3m
Data centers lost big in the midterms
Democrats swept into office on promises to clamp down on energy-hungry data centers, reshaping the regulatory landscape for AI infrastructure.
In brief
Democrats swept into office on promises to clamp down on energy-hungry data centers, reshaping the regulatory landscape for AI infrastructure. Democrats won midterm races across the U.S. on anti-data center platforms, with winning candidates pledging stricter regulation or moratoriums on the energy-intensive…
Democrats swept in on data center anger
Democrats won governorships in Texas, Ohio, Georgia, Nevada and Iowa by campaigning against data centers. Candidates across the country made opposition to the energy-hungry facilities a central campaign promise.
Campaign spending on data centers hit 380 million
Campaigns spent more than three hundred eighty million dollars on television ads mentioning data centers. Democrats outspent Republicans on the topic by more than three to one.
Winning candidates back regulation or bans
Data Center Watch found that the vast majority of winning candidates for Congress and governorships expressed support for stronger regulation or moratoriums.Among governors, thirty two of thirty four victorious candidates support stronger regulation or restrictions.
Wisconsin governor-elect shifts to harder line
Wisconsin Governor-elect David Crowley, a Democrat, changed his position under pressure to take a harder line against data centers. Initially opposed to any moratorium, Crowley later said he supported one.
Crowley plans disclosure and community approval rules
Crowley said he is considering requiring developers to disclose water and energy consumption, ensuring communities support projects before approval, and insulating ratepayers from energy costs.
Texas agriculture chief cites water threat
Clayton Tucker, the first Democrat elected Texas state agriculture commissioner since nineteen eighty six, said his pledge to fight data center development was critical to his victory.
“You know, there's an old saying around here that 'whiskey's for drinking and water's for fighting.' And that's exactly what happened.”
Local voters overwhelmingly back restrictions
Voters in local referendums cast ballots overwhelmingly in favor of restricting data centers. Redbud Consulting tracked forty seven referendums in forty four municipalities in twelve states and found restrictions approved in forty four of forty…
Three quarters of voters oppose local data centers
About three quarters of U.S. voters oppose the construction of a new data center in their community, according to The AP Voter Poll. Majorities in red and blue states alike were opposed.
Data centers were not a top voting issue
Despite voters' deep opposition to data centers near them, The AP Voter Poll suggests it was not a particularly motivating issue.About one quarter of U.S.
Industry warns of economic consequences
The Data Center Coalition said developers need to keep building trust with officials and communities. An industry official warned that restrictions could mean host communities miss out on tax revenue and payments from tech companies.
Tech stocks fall on data center concerns
On Thursday, the Nasdaq sank eleven percent below its all time high amid worries that data center construction may slow because it is getting costlier to borrow money.
Morgan Stanley flags Texas as pivotal
Morgan Stanley said Democrat Gina Hinojosa's election as Texas governor is the most important election result for data center development.
The key point
Democrats won midterm races across the U.S. on anti-data center platforms, with winning candidates pledging stricter regulation or moratoriums on the energy-intensive facilities.
