US election results threaten half of planned AI data centres

Democratic victories in Tuesday's US midterm elections, including gubernatorial wins in Texas, Ohio, and Georgia, threaten to expose a large share of planned AI data centre projects to moratoriums, tighter regulation, and local opposition. In Texas, incoming Democratic Governor Gina Hinojosa has pledged an immediate moratorium on data centre development, potentially affecting roughly 13 gigawatts of capacity, or nearly 30% of US projects slated for 2028. Similar stances from winners in Ohio and Georgia could leave half of proposed additions nationwide vulnerable to stricter scrutiny. The election results, driven by voter backlash over costs and the Iran war, also rattled markets, with S&P 500 futures falling 1.2% and Asian chip suppliers declining. Analysts warn of delays and higher costs, though projects with power and permits may proceed, while others could relocate to states like Louisiana or Oklahoma.