US election backlash against data centers rattles AI industry

The US midterm elections became an informal referendum on artificial intelligence, with community backlash against data centers emerging as a decisive political issue that contributed to a sweeping Democratic victory and sent industry stocks falling. According to an NBC News exit poll, 56% of voters said AI and data centers significantly influenced their vote, while dozens of communities approved restrictions on new facilities. Local anger focused on high electricity costs, excessive water consumption, and environmental damage from the data center boom. The Democratic takeover of both the House and Senate threatens the sector's hundreds of billions in investments, as investors anticipate stricter regulations, reduced tax incentives, and project delays. Data center company shares faced pressure on Wednesday amid the new political landscape.