Democratic midterm victory puts US data center construction boom in question

New governors and moratoriums

The US midterm elections on November 3, 2026 reshaped the political landscape around the largest construction boom in the artificial intelligence industry — data centers. As The National reports, Democrats won governorships in five states: Texas, Georgia, Ohio, Iowa and Nevada. According to the outlet's analysis of Cleanview data, these states together hold 37% of planned US data center capacity, with Texas accounting for the largest share — 22.8%.

What the new governors promise

Texas governor-elect Gina Hinojosa promised a moratorium on data center construction and greater involvement of local communities in site selection. The governors of Georgia and Ohio, Keisha Lance Bottoms and Amy Acton, also promised pauses on construction of large data centers. The stakes are high: governors appoint utility regulators who control electricity prices and grid connections, influence tax incentives for investors and states' infrastructure policy, although planning authority remains with local governments.

Referendums and Congress

The opposition that The National described even before the votereached the ballots as well: according to Reuters, citing Ballotpedia, voters in 38 local counties across 10 states considered at least 41 data center measures, with the most — 21 proposals — in Ohio. Nearly every moratorium put to a vote was approved. Democrats also won seven Senate seats in states holding 32% of planned data center capacity, giving the party greater ability to oversee the AI sector. However, analysts expect gridlock rather than sweeping change as long as President Donald Trump retains veto power; Mark McCarthy of Georgetown University believes the new Congress will more likely focus on protecting households from paying for data centers' electricity costs.

Context: the boom continues

Data centers were not the main theme of the elections — voters were more concerned about the cost of living, groceries and healthcare — but the data center debate is increasingly tied to these issues, primarily through rising electricity bills and the distribution of costs of the AI infrastructure boom. Meanwhile, the construction boom continued despite growing resistance: according to Cushman & Wakefield, US data center capacity under construction grew 48% from December to June. Whether this pace continues is now largely a political question, and for investors the key factor will be the stance of the new governors, above all Texas's.