Midterm elections could zap the data center buildout, experts say
Summary
The article says election results and local votes opposing data centers could slow U.S. construction of facilities that support artificial intelligence. Analysts expect tighter rules, permit delays, and fewer tax incentives to raise costs, with Texas and Georgia highlighted as key states.Key Facts
- Redbud Consulting counted 38 approved ballot measures restricting data centers across several states; Harwood, North Dakota, was the only location reported to approve one.
- The article says several candidates who won state or gubernatorial races had campaigned for stricter data center rules.
- Analyst Dan Ives cited plans for 800 to 1,000 U.S. data centers and said election results could slow their development.
- Ives said Texas could be especially affected because it accounts for an estimated 25% to 30% of data center capacity expected to come online by 2030.
- The article says Texas Governor-elect Gina Hinojosa proposed a temporary construction ban, and analyst Gordon Johnson said the state had already suspended data center approvals.
- Georgia Governor-elect Keisha Lance Bottoms said she planned to issue an executive order pausing new construction and review tax incentives for developers.
- Market analyst Adam Crisafulli said data-center-related stocks fell Wednesday amid investor concerns about permitting delays.
- Seema Shah said developers could face costs for grid investment and lose tax incentives, potentially increasing the value of already operating facilities.
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