Data center backlash reshapes midterm races, signaling tougher road for tech giants

Data center opposition shaped midterm elections across the U.S., with many winning Democrats pledging stricter regulation of the energy-intensive facilities, signaling a tougher environment for tech giants despite President Donald Trump's support for the industry. Democrats flipped governorships in Texas, Ohio, Georgia, Nevada and Iowa, with candidates campaigning on data center restrictions tied to affordability concerns. Over $380 million was spent on TV ads mentioning data centers, and most victorious governor candidates expressed support for stronger regulation or moratoriums. Industry groups are urging trust-building, while Wall Street fears construction slowdowns could chill economic growth. Local referendums overwhelmingly approved restrictions, and about three-quarters of voters oppose new data centers in their communities, though the issue ranked below corruption and cost of living in importance.