Data Center Expansion Suffers Major Setback in 2026 Midterms

Voters in the 2026 midterm elections overwhelmingly approved over 40 measures restricting data center construction, with only one initiative in Harwood, North Dakota, favoring expansion, marking a major setback for the industry. Ohio led with 21 restriction measures, all passing, while Maine, Illinois, Kansas, New Jersey, California, Florida, Nevada, North Dakota, and Wisconsin also saw votes. Restrictions varied, including megawatt caps, zoning limits, voter approval requirements, and outright bans, with six total bans succeeding, reflecting public concerns over electricity costs, water use, and environmental impacts. The results prompted Politico to call data centers "the midterms' other big loser," and two mayors in Oklahoma and Ohio were recalled over data center proposals. Analysts expect Democratic control of Congress to increase scrutiny, potentially ending tax breaks and incentives as communities push for companies to pay for utilities and local resources.