Midterm elections could zap the data center buildout, experts say

Updated on: November 4, 2026 / 5:26 PM EST / CBS News

The Democrats' sweeping victories in the midterm elections on Tuesday could buoy opponents of data centers in some parts of the U.S. and slow the spread of the controversial facilities, according to Wall Street analysts.

As of Wednesday afternoon, voters had approved 38 ballot measures restricting data centers in communities across California, Illinois, Maine, Ohio, New York and other states, according to an analysis from political research firm Redbud Consulting. Residents in Harwood, North Dakota, were the only voters to approve a data center.

The election also elevates a number of state and gubernatorial candidates who made stricter regulation of data centers a key part of their campaigns.

The rapid development of data centers around the U.S. to help power artificial intelligence has provoked widespread public backlash. By a margin of more than 2-to-1, more Americans oppose than favor building a new data center in their area, a CBS News poll found this summer.

Franklin Templeton chief market strategist Stephen Dover predicted that the election results will lead to a "slowdown in data centers being built," bringing new regulations and costs for their developers.

"For tech investors, the…

Original source: https://www.cbsnews.com/moneywatch/