Voters Push for AI and Data Center Restrictions in Recent Elections

In a notable shift, voters in the recent elections overwhelmingly supported candidates and measures aimed at increasing restrictions on artificial intelligence (AI) and data centers across the United States. This development poses a significant challenge to the rapid AI expansion championed by Donald Trump.

A resource from polling firm Redbud Consulting tracked data center initiatives on the ballot, revealing that out of 44 measures across 10 states seeking to restrict data centers, 38 passed. These measures included numerous moratoriums and bans, primarily affecting future projects planned for 2028. Only one measure passed that allowed a data center to proceed, which mandates independent reviews and public hearings for expansions in a North Dakota city.

In addition to regulations on data centers, voters also elected anti-AI candidates, particularly in key states like Texas, which is central to the AI boom. Democratic challenger Gina Hinojosa’s victory in the Texas governor race could fundamentally alter the landscape for AI development in the state, which is projected to account for over 41 percent of added data center capacity by 2028.

Hinojosa intends to delay projects until laws addressing environmental impacts are enacted, exposing approximately 13 gigawatts of data center capacity to potential setbacks. Gordon Johnson of GLJ Research noted that while some projects with necessary permits will continue, those lacking state environmental permits could face delays of 12 to 18 months, with some developers possibly relocating to other states.

Texas is not alone in this trend, as Democrats also secured victories in Arizona, Georgia, and Ohio, which could lead to similar delays in data center projects. Axios projected that nearly two-thirds of data center capacity expected by 2028 could face increased scrutiny and regulatory hurdles.

For AI firms, these developments represent a significant concern, as delays could hinder revenue growth. IT consulting firm Gartner recently estimated that the AI boom is nearly $5 trillion short of being self-sustaining. Developers may soon encounter stricter rules regarding tax incentives and community protections, further increasing operational costs.

Despite the clear voter sentiment against AI and data centers, some industry insiders downplayed the election results. Adam Kovacevich, CEO of the tech industry trade group Chamber of Progress, argued that the outcomes do not indicate a mandate against AI or data centers, suggesting that Democratic candidates opposing data center bans performed well.

However, Alejandra Montoya-Boyer, vice president of The Leadership Conference’s Center for Civil Rights and Technology, contended that the elections marked the first true AI election in the U.S., with voters prioritizing leaders who would regulate AI. NBC exit polls indicated that three out of four voters opposed data centers, with many citing AI regulation as a crucial factor in their voting decisions.

Montoya-Boyer emphasized that the backlash against AI is not solely about utility costs but reflects a broader demand for regulation. Analysts noted that voters appear more concerned about blocking state AI regulation than data center controversies, with a significant trust gap in institutions promising oversight.

Experts warn that slowing down the U.S. AI infrastructure buildout could benefit countries like China. Gary Ng Cheuk-yan, a senior economist at Natixis Corporate and Investment Bank, suggested that a slowdown in the U.S. could provide China with an advantage in the global AI race.

While some analysts believe that the Democratic victories will not halt all data center development, they anticipate new constraints on U.S. computing capacity. This could lead to major tech companies considering building data centers outside the U.S., countering Trump’s vision for a fully domestic tech industry.

Elon Musk, who invested heavily in Republican candidates, also faced setbacks, as polling indicated that voters preferred not to live near AI data centers. Despite this, Musk remains committed to expanding his controversial data center in Memphis, aiming to increase its capacity significantly by 2027.

As the political landscape shifts, the future of AI and data centers in the U.S. remains uncertain, with potential regulatory changes on the horizon.

Related link: datacentersontheballot.com

Source: Ars Technica AI