Key highlights:
- Voters in 10 states approved 38 out of 44 ballot measures to restrict data centers.
- Texas Governor-elect Gina Hinojosa says she’ll pause projects until lawmakers address electricity, water, pollution, and property rights concerns.
- Almost two-thirds of the data center capacity planned for 2028 could be delayed.
- Tech industry leaders claim the results show frustration with Trump, not opposition toward AI.
AI infrastructure in the US is growing fast, but more voters, local communities, and new officials are pushing back. People are worried about higher electricity bills, huge water use, pollution, and who’s paying the bill for infrastructure. That’s turned data centers into an important political topic.
The big November 2026 elections made things even less certain for tech companies who want to invest across the country. Candidates promising stronger AI rules and tighter data center controls won in several key states. Industry leaders argue the election was more about other issues than a real backlash against AI, but developers now have to think twice before expanding.
Data Center Restrictions Gain Support Across States
Election results show more resistance to large data centers. Redbud Consulting says voters in 10 states have passed 38 out of 44 measures to restrict them, sometimes using bans or temporary halts to new construction. It’s clear people worry about what these centers mean for the local communities.
Only one measure passed that allowed a data center project to proceed, and it came with additional conditions. Developers in one North Dakota city must pay for outside reviews and hold public hearings before they can grow or propose anything new.
Existing projects already underway or approved through 2027 won’t be affected by these new rules. But for data centers planned for 2028 and later, things could get a lot tougher.
Texas Election Creates Uncertainty for Major AI Projects
Texas is a major focus for data center developers right now, especially since Democrat Gina Hinojosa won the governor’s race. The state is on track to host over 41 percent of new US data center capacity in 2028, so any rule changes matter a lot.
Hinojosa says she’ll halt projects until lawmakers deal with how they affect water, electricity, air quality, and property rights. She also wants to stop giving tax breaks to data center developers and make sure local communities get more input, plus protect people from extremely high utility bills.
Bloomberg says about 13 gigawatts of capacity in Texas could be affected. Gordon Johnson from GLJ Research thinks projects that already have their power, permits, and building materials lined up will move ahead. But if a project just has a power deal and no state environmental permit yet, expect a 12-18 month delay.
Some developers are looking at moving projects to Louisiana or Georgia, and others might drop their plans altogether. Libby Cantrill of PIMCO thinks approvals will take longer, with developers facing more hurdles, even if Texas skips an outright ban.
Texas isn’t alone. Democrats also won governor races in Arizona, Georgia, and Ohio, the next biggest states for data centers. Axios figures almost two-thirds of 2028 data center capacity could face similar delays. Bloomberg says about half of US data centers are now more likely to face scrutiny from regulators.
Major Tech Companies Say Voters Are Not Against AI
Tech leaders say it’s a stretch to call this a clear public revolt against AI. Adam Kovacevich, CEO of Chamber of Progress, believes the results don’t show voters gave a strong anti-data center message. He points out that Democratic governor hopefuls who were against data center bans won more often than those supporting bans.
But NBC News exit polls suggest otherwise, three out of four voters said they oppose data centers, and over half said AI and data centers mattered a lot in their Congressional vote.
Ali Mortell from Blue Rose Research says everyday issues like electricity bills and pollution are huge concerns. Their polls show people would rather live near a prison, methadone clinic, or nuclear plant than next to an AI data center. This highlights the difficulty companies face in gaining public trust, even when they promise to cover infrastructure costs.
Congress could move to tighten federal AI rules, too. With Democrats in charge, they may try for new limits on computing power and fight efforts to ease up on environmental rules. Still, passing anything big would be tough if Republicans unite or Trump uses a veto.
China Could Benefit as Musk Continues Expansion
The slowdown in US projects could affect the global AI industry. Gary Ng Cheuk-yan at Natixis Corporate and Investment Bank says if America’s capacity increases more slowly, China could step in, offering cheaper AI computing supported by abundant electricity supplies.
Big companies like Amazon and Google might even look outside the US to build new data centers if getting approvals gets harder. That would go against Trump’s goal of keeping tech infrastructure in the US.
Elon Musk isn’t slowing down, though. His company faces a lawsuit over claims that gas turbines at its Memphis, Tennessee, Colossus data center are polluting the area. Musk also spent nearly half a billion dollars backing Republican candidates in the 2026 midterms, says Quartz.
Even with the rising opposition, SpaceX just hiked its 2027 data center capacity target from 10 to about 13 gigawatts, according to SemiAnalysis. The research firm says over 9 gigawatts of capacity are already lined up. So, despite growing pushback from the public and regulators, some big tech companies are still moving forward with their plans.
Also read: Apple Cuts Internal AI Spending Limits as Company Moves to Rein in Costs
