Democrats’ midterm gains put US data centre boom under pressure

Democrats flipped governorships in states holding 37 per cent of America's planned data centre capacity.

The AI industry's biggest building boom now sits largely under US Democratic leadership, with incoming governors promising tougher restrictions and voters widely signalling approval of data centre measures offered to them in Tuesday's midterm elections.

Democrats flipped five governorships in Tuesday's elections: Texas, Georgia, Ohio, Iowa and Nevada. Together, those states hold 37 per cent of planned data centre capacity in the US, according to our analysis of data from Cleanview, which tracks data centre projects and capacity.

Texas accounts for the biggest share, with 22.8 per cent of planned US capacity. Its incoming governor, Democrat Gina Hinojosa, has promised a moratorium on their construction and greater community input into where data centres are built. The incoming governors of Georgia and Ohio, Keisha Lance Bottoms and Amy Acton, have also pledged pauses on construction of large data centres.

This matters because governors have considerable influence over where and how data centres are built. They appoint utility regulators who oversee electricity prices and grid connections, and have a say over the tax incentives used to attract investment. They also shape state-level infrastructure and development policy, although local authorities retain important planning powers.

Democrats also flipped seven Senate seats in states holding 32 per cent of planned data centre capacity. As The National reported this week, control of Congress gives Democrats more oversight of the AI sector. However, analysts expect gridlock rather than sweeping change while President Donald Trump holds a veto. Georgetown University’s Mark McCarthy said the new Congress was more likely to protect households from paying for data centres’ power costs.

Data centres on the ballot

The backlash we charted before the vote also reached the ballot directly. Voters in 38 local jurisdictions across 10 states considered at least 41 data centre measures, Reuters reported, citing Ballotpedia. Ohio had the most, with 21 proposals. Voters approved nearly every moratorium on the ballot.

Big issue, but not the main issue

Of course, data centres alone did not decide the elections. Among the biggest issues for voters were the cost of living, groceries and health care. But the data centre debate is increasingly tied to those concerns, particularly over rising electricity bills and who ultimately pays for the infrastructure needed to support the AI boom.

The results point to a national wave of data centre scepticism in political office. That matters for an industry in a race to build. For tech investors, the bigger questions may be what new governors in states such as Texas will do next.

The building boom had continued this year despite growing opposition. US data centre capacity under construction rose 48 per cent between December and June, according to real estate firm Cushman & Wakefield. Whether that pace can continue is now a much bigger political question.

Updated:

November 05, 2026, 9:46 AM