AI data center backlash fuels votes for change and sharp stock market swings

November 6, 2026 / 12:57 PM EST / CBS News

Concern over AI and misgivings about data center construction helped drive votes for change in the midterm election — and have fueled stock market volatility that experts say is likely to continue.

Investors are worried that the political shift in Congress could slow the buildout of data centers that power AI, potentially throttling one of the economy's main growth engines.

Voters on Tuesday passed at least 44 of 47 measures proposed across the country to restrict data centers — from outright bans to temporary moratoriums — with a few still pending.

The election also elevated a number of candidates who made stricter regulation of data centers a key part of their campaigns. They include Texas Gov.-elect Gina Hinojosa, who beat Republican incumbent Greg Abbott and who has promised to halt the construction of new data centers until more safeguards are in place.

"What has happened is data centers have moved into mostly rural communities and there are no rules to protect Texas," Hinojosa told CNN's Jake Tapper on Thursday. "We need to stop what we are doing with data centers until we have those protections."

Texas, which did not have…

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