US midterm results threaten AI data centre boom in Texas and Georgia

Democrats' midterm victories, including governorships in Texas and Georgia, could complicate US AI data centre expansion as new leaders push for construction pauses over environmental and cost concerns. Texas Governor-elect Gina Hinojosa and Georgia Governor-elect Keisha Lance Bottoms campaigned on halting new approvals until safeguards on water, electricity costs, and community consultation are established. Texas is projected to host a quarter of US data centre capacity by 2030, making policy shifts significant. Elon Musk, a major Republican donor, joked about space-based data centres amid the regulatory threat. Michigan Senator-elect Abdul El-Sayed has called for a pause on frontier AI development. Data centres may consume 11.8 per cent of US electricity by 2030, though federal action faces a potential presidential veto.