Data centers face political backlash after U.S. midterm elections

Data centers faced significant political backlash in the U.S. midterm elections, with many winning Democratic candidates pledging stricter regulations on the energy-intensive facilities, potentially reshaping the industry's growth landscape. Campaigns spent over $380 million on TV ads mentioning data centers, with Democrats outspending Republicans three-to-one. Democrats flipped at least five governorships and took full control in five states, while tracking groups found most winning candidates support stronger regulation or moratoriums. Industry groups warn restrictions could reduce tax revenue and slow economic growth, while AI-related stocks fell 11% below their all-time high amid concerns about construction slowdowns. Local referendums approved restrictions in 44 of 45 completed votes, though polls showed data centers were not a top voter priority.