US midterm wins signal growing backlash against AI data centers

Democratic candidates opposing new data centers won key governor races in Tuesday's US midterm elections, signaling growing public backlash against AI infrastructure. Voters also approved nearly all local moratoriums on new facilities across roughly 40 jurisdictions in about ten states. The wins in Texas and Georgia, where Democrats broke decades of Republican control, give political weight to opponents of data centers, which critics say raise electricity bills and strain resources. Stock prices for AI infrastructure firms like Core Scientific and Iren fell sharply as investors anticipate stricter regulations. Analysts suggest the results could slow US data center expansion, with Goldman Sachs estimating about 45% of planned capacity growth may face temporary suspensions. However, some investors believe Democrats will moderate their stance given AI's strategic importance in US-China competition.