AI Data Center Crackdown Looms After Democrats’ Midterm Sweep

The 2026 U.S. midterm elections have sent shockwaves through the technology sector, with voter backlash against artificial intelligence data centers emerging as a defining issue. Democrats flipped control of Congress and won governorships in key states—including Texas, Ohio, and Georgia—all major data center hubs. Many candidates campaigned explicitly on anti-data-center platforms.

According to an NBC exit poll, more than 50% of respondents said AI and data centers were a “crucial or major factor” in their vote. Voters considered 41 data center-related ballot measures across 10 states and rejected them in nearly every instance.

Sen. Bernie Sanders responded to the results on social media, writing, “National data center moratorium now.” His post echoed a bill he and Rep. Alexandria Ocasio-Cortez introduced earlier this year.

The political fallout has been immediate for investors. Shares of companies with data center exposure have sold off sharply since election night. Morgan Stanley warned in an analyst note that Democratic victories bring “greater expectations for data center restrictions,” potentially dividing the country into areas that welcome new data centers and those that do not.

Goldman Sachs also predicted delays in data center construction in states such as Georgia and Texas. With Democrats now controlling Congress but facing a potential veto from President Trump, the battle over America’s AI infrastructure is far from over.

Source: CNBC: Top Democrats call to rein in AI buildout after midterms sweep