US voters reject data centre boom in midterm elections

US voters overwhelmingly rejected local ballot measures supporting data centre development in Tuesday's midterm elections, with all but one of at least 50 measures failing across 13 states, signalling public opposition to the rapidly expanding industry. The measures were tracked by Ballotpedia across states including Ohio, where 21 proposals failed in 18 jurisdictions, and coincided with the election of pro-regulation governors in key data centre states Texas, Georgia and Ohio. The results triggered a sharp market sell-off, with Nvidia shares dropping 9 per cent and the Nasdaq falling 5.5 per cent amid fears of an AI slowdown. Analysts suggest the midterms acted as a referendum on AI infrastructure rather than a political statement, with potential regulatory slowdowns in Texas and Georgia—which account for about a third of US data centre spending—possibly pushing operators to more lenient jurisdictions. Some experts view the market decline as a reality reset after overspending rather than a bubble bursting.