AI Data Centers Face Landslide Defeat in Midterm Proxy Vote

Democrats swept the midterm elections, but the results also delivered a landslide defeat for the AI and data center industry, which faced its first proxy election as voters voiced widespread opposition to the infrastructure buildout. Data center backlash became a central issue in races nationwide, driven by concerns over noise pollution, rising utility bills, water shortages, and property values. In Texas, Democrat Gina Hinojosa defeated Republican Governor Greg Abbott after promising a moratorium, while Georgia's Keisha Lance Bottoms won advocating a statewide pause. The results are expected to spur stricter local regulations and moratoriums, slowing AI infrastructure development. Industry leaders acknowledged the shift, with Elon Musk joking about space-based data centers and OpenAI's Sam Altman suggesting AI progress should be constrained by public control.