American voters rejected 40 out of 41 ballot measures concerning AI data centers, with rejection rates averaging a clear 75 percent NZZ.
Every second voter stated in exit polls that artificial intelligence and data centers influenced their voting behavior. The backlash against the infrastructure expansion triggered a severe reaction on financial markets, where the Nasdaq 100 index plunged by 6.4 percent on Thursday in its heaviest drop since the outbreak of the coronavirus pandemic in March 2020 NZZ.
The voter rejection follows widespread concern over rising electricity costs, water pollution, and noise pollution, alongside public anger over tax gifts granted to tech conglomerates. Analysts estimate that up to 60 percent of new computing capacity scheduled to go online starting in 2028 could now be suspended.
Major tech companies including Amazon, Alphabet, and Meta have planned to invest 10 trillion dollars into this new infrastructure. Following the midterms, numerous US states are expected to put the expansion of AI infrastructure on ice.
In Texas—where analysts from Goldman Sachs estimate around a quarter of all planned US data centers are supposed to be built, and Semianalysis projects 41 percent of projects through 2028—long-serving Republican Governor Greg Abbott was voted out of office after twelve years in favor of Democrat Gina Hinojosa. Abbott had previously attracted tech giants with tax rebates for data center operators investing over 200 million dollars.
Despite the broader moratorium and political changes across US states, projects already under construction remain unaffected. Oracle is currently building a massive AI data center named Stargate in Texas, which is expected to be completed by the end of 2026.
However, the broader uncertainty casts a shadow over future market developments, including the upcoming initial public offering of Anthropic, whose prospectus explicitly warns of the risk of being unable to build a sufficient number of new data centers.
Dina Powell McCormick, the manager responsible for AI centers, provided a behind-the-scenes look on Thursday regarding negotiations with the states. The 53-year-old, who is married to Pennsylvania’s Republican senator, stated that it will now definitively become more difficult to build data centers.
