Data center buildout faces slowdown after midterm elections

Democratic victories in Tuesday's midterm elections are expected to slow U.S. data center development, as voters approved 38 ballot measures restricting the facilities across multiple states, according to analysts. Wall Street experts predict new regulations and costs for developers, with Texas and Georgia—key data center markets—likely affected by incoming governors who campaigned on construction pauses or moratoriums. The sector's rapid growth for AI has sparked widespread public opposition. Analysts note slower construction may temper overheated investment, though it's unlikely to derail AI spending or broader economic growth. Existing operational data centers could gain value as new projects face delays and higher costs.