Data-Centre Opposition Drives Democrats' Midterm Wins, Threatening AI Boom

Democrats' landslide wins in the US midterm elections, fueled partly by opposition to data centres, signal a shifting public mood on AI that investors say could slow the boom driving US economic growth and stock markets. Democratic candidates who campaigned on data-centre moratoriums won gubernatorial races in Texas and Georgia, ending decades of Republican control. The victories empower backlash against projects that are loud, water-intensive, and unpopular with neighbours, likely ushering in tougher regulation. AI stocks fell on Wednesday amid concerns about spending and overcapacity, with analysts calling the results a referendum on AI. Investors warn the social licence for data centres is now in question, though some view the Nasdaq drawdown as a buying opportunity.