Data center opposition reshapes AI boom outlook after midterms

Democrats' landslide midterm victories, fueled partly by opposition to data centers, signal a potential slowdown in the AI boom that has driven U.S. economic growth and stock markets, investors said Wednesday. Democratic gubernatorial candidates in Texas and Georgia, who campaigned on data center moratoriums, won offices the party hasn't held in decades, handing political power to opponents of the projects central to AI development. Data centers are criticized for being loud, water-intensive, and electricity-hungry, with growing unpopularity among neighbors, suggesting shifting public sentiment could temper the industry's rapid expansion.