As of Wednesday afternoon, voters had approved 37 ballot measures restricting data centers in communities across California, Illinois, Maine, Ohio, New York and other states, according to an analysis from political research firm Redbud Consulting.
uncertain
voters → approve → Consulting
Residents in Harwood, North Dakota, were the only voters to approve a data center.
asserted
Residents → approve → center
The election also elevates a number of state and gubernatorial candidates who made stricter regulation of data centers a key part of their campaigns.
asserted
regulation → elevate → campaigns
The rapid development of data centers around the U.S. to help power artificial intelligence has provoked widespread public backlash.
asserted
development → power → backlash
By a margin of more than 2-to-1, more Americans oppose than favor building a new data center in their area, a
found this summer.
asserted
Americans → oppose → area
Focus on Texas
Franklin Templeton chief market strategist Stephen Dover predicted that the election results will lead to a "slowdown in data centers being built," bringing new regulations and costs for their developers.
asserted
results → predict → developers
"For tech investors, the big focus is will these midterm elections slow the pace of the planned 800 to 1,000 data centers across the U.S. fueling the AI Revolution," Yorkville Ives & Co. technology analyst Dan Ives said in a report.
asserted
Ives → slow → report
Ives pointed to Texas, which accounts for 25% to 30% of the
expected to come online by 2030, as one state that could be affected.
uncertain
that → point → state
Democrat Gina Hinojosa, who defeated Republican i in the race for governor, proposed a temporary ban on data center construction during her campaign.
asserted
who → defeat → campaign
"Texas is the foundation of the AI buildout in the U.S.," Ives told CBS News.
asserted
Ives → tell → News
Hinojosa's win over Abbott could stall the addition of 13 gigawatts of data-center power in Texas, according to Gordon Johnson, CEO and founder of the investment adviser GLJ Research.
uncertain
win → stall → adviser
Abbott had already suspended data center approvals, which makes it easy for Hinojosa to extend the moratorium.
asserted
Hinojosa → suspend → moratorium
"Texas already has a moratorium — Abbott built it.
asserted
Abbott → have → it
All the new governor has to do is keep it in place.
asserted
governor → have → place
She doesn't need a new law to keep data center permits frozen," Johnson told CBS News.
asserted
Johnson → need → News
Keisha Lance Bottoms'
, the third-largest data center market, also has significant implications for the infrastructure buildout.
asserted
Bottoms → have → buildout
Bottoms, who campaigned on pausing new data center construction in the state,
on Wednesday that she would immediately "sign an executive order for that pause, and then we will determine what else we need to do administratively to take that pause into effect.
asserted
we → campaign → effect
"Bottoms also said she plans to review tax incentives offered in Georgia that have spurred data center development.
asserted
that → say → development
"So, of course, we are going to have to take a look at what those agreements entail and determine what our remedies are to enact that pause, but I don't think we're going to get a lot of pushback across the state," she said.
asserted
she → go → state
"Many local governments have already taken that first step."
asserted
governments → take → step
Seema Shah, chief global strategist at Principal Asset Management, thinks data center developers could face additional requirements to invest in electrical grids and potentially lose tax incentives, thereby raising their costs.
uncertain
developers → think → costs
Massive investment in data centers and the artificial intelligence sector more broadly has helped propel U.S. economic growth and drive stock market gains.
asserted
investment → help → gains
In the long term, however, a slower data center buildout is unlikely to hamstring the economy, Dover of Franklin Templeton told CBS News.
asserted
Dover → hamstring → News
"It's possible to argue that the AI trade and data center buildout was getting overheated, and this could dampen some of the excessive investment that might not have a good return on capital, which investors have questioned anyway," he said.
uncertain
he → argue → which
"So unbridled expansion will be tempered a bit, but probably not a lot."
asserted
expansion → temper → ?
Although data center moratoriums may delay construction, they're unlikely to torpedo capital spending on AI or short-circuit broader growth, according to economists.
uncertain
they → delay → economists
"A more restrictive stance toward data centers would stretch the timelines of future projects, and slower construction in the medium to long term wouldn't necessarily be a bad outcome for the macroeconomy," analysts with Oxford Economics said in a report.
asserted
analysts → stretch → report
The Aporia
