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HARRISBURG, Pa. (AP) -- After a campaign season filled with outrage against artificial intelligence data centers, the midterm elections ushered in a wave of Democrats pledging to clamp down on the energy-hungry behemoths.
A tougher regulatory environment for AI giants and data center developers is expected to follow, even if President Donald Trump -- perhaps the industry's biggest champion -- stalls any federal crackdown.
Data center regulation itself was not on most midterm ballots, and it wasn't among the top issues for most voters. But hardline stances against the server warehouses were woven into the platforms of many candidates, including the Democrats who upended longtime Republican control of the governorships in Texas, Ohio, Georgia, Nevada and Iowa, many of which are data center hot spots.
Redbud tracked 47 referendums in 44 municipalities in 12 states, including 21 in Ohio alone.
HUBBARD BAN APPROVED
Locally, voters in Hubbard overwhelmingly approved banning data centers in the city by a vote of 76% in favor and 24% against, according to results from the Trumbull County Board of Elections. Hubbard residents collected more than 750 signatures – nearly twice the minimum 370 required – in July for an initiative allowing Hubbard residents to decide whether they want to keep or outright ban data centers.
The option came after residents expressed concerns about a data center development around Deer Creek Golf Course as part of Project Milo, which Mayor Ben Kyle first spoke about in February 2025. In November 2024, he said the project was still in the site selection and utility research phases, which the unidentified company was doing in five other communities across Ohio.
In May, Kyle confirmed signing a nondisclosure agreement in December 2024, intending to allow the city to gather the “technical and utility” information needed to see whether the city could accommodate something of that scale. Kyle said Tuesday night that the city's voters have made their decision clear through the vote.
DATA CENTERS WERE CAMPAIGN TALKING POINT FOR DEMS
Skepticism of data centers, and their impact on electricity prices, often blended with the fight for affordability -- a key campaign talking point for Democrats.
In Texas, Clayton Tucker, the first Democrat elected state agriculture commissioner since 1986, said his pledge to fight data center development was critical to his victory. Everywhere he went, he said, ranchers worried that data centers posed an existential threat to their dwindling water supplies.
"You know, there's an old saying around here that 'whiskey's for drinking and water's for fighting,'" Tucker told The Associated Press. "And that's exactly what happened."
According to data from AdImpact, campaigns large and small spent more than $380 million on television ads mentioning data centers. Democrats outspent Republicans on the topic by a more than 3-to-1 ratio.
Sweeping wins by Democrats could have far-reaching implications for data centers. Besides taking control of Congress, Democrats flipped at least five governors' offices, including Ohio, and took full control of state governments in six more states: Arizona, Wisconsin, Minnesota, Pennsylvania, Nevada and Michigan.
Data Center Watch, a project of AI security consultancy 10a Labs, said it tracked winning candidates for Congress and governorships and found the vast majority had expressed support for stronger regulation or even a moratorium.
Among governors, 32 of the 34 victorious candidates in races where AP called a winner support stronger regulation or restrictions. Twelve of the 34 support bans or moratoriums, it said.
AI giant OpenAI published a framework Thursday enumerating new commitments to the communities where it develops data centers. The company said it was asking federal, state and local policymakers to write "clear rules for how the industry builds."
"Lawmakers should establish rules to advance responsible investment, protect residents, and ensure that the benefits of AI infrastructure are broadly shared," the post said.
The election of data center skeptics adds challenges to stock markets riding high on the AI boom.
On Thursday, the Nasdaq, which is full of AI-related and other tech stocks, sank 11% below its all-time high amid worries that data center construction may slow because it's getting costlier to borrow money.
AI data center construction is driving much of the U.S. economy's growth, and any slowdown could have a broader chilling effect.
In an analyst report, Morgan Stanley said decisive results for Democrats carry "greater expectations for data center restrictions" that, under new state regulations, could "split the country into areas that are open to new data centers and those without."
Morgan Stanley said Ohio's election of Democrat Dr. Amy Acton as governor "creates significant risk of data center project delays in the state." Acton has pledged to block a data center project unless it meets certain standards.