Data center developers pivot after midterm rebuke, brace for AI rules

Data center developers are pivoting after voters delivered a decisive rebuke of the industry in the midterm elections, preparing for promised federal AI regulations that could slow construction. The U.S. saw 911 new data center projects between 2016 and 2026, with 571 more under construction, driven partly by AI demand. Newly elected governors could pause up to 41% of planned centers, and over 440 local moratoriums are active. OpenAI has rebranded centers as "compute campuses" and pledged community transparency, while Meta plans to expand existing sites. Experts expect projects to continue, as slowing development could ripple through the economy, but with increased scrutiny and requirements.