Midterm voters push back on data center expansion as AI spending draws scrutiny
Voters in at least 10 states sent a clear message about data center growth in Tuesday’s midterm elections, supporting restrictions or rejecting proposed developments. Rising electricity costs, land use and the rapid expansion of AI infrastructure were among the concerns.
The election also brought mixed reactions from investors and business leaders. Democrats took control of both chambers of Congress, and some expect greater economic stability. Others anticipate tougher scrutiny of artificial intelligence and data center projects. State-level gains could also reshape how AI is regulated.
A historic Democratic sweep in Texas has put one of the country’s largest AI infrastructure hubs under new political leadership. The shift raises questions about billions of dollars in planned investments, as President Donald Trump’s administration backs large-scale data center construction to support the AI boom.
Wall Street’s concerns about AI appear to extend beyond Thursday’s sharp drop in U.S. stocks, when investors sold AI shares. Meanwhile, Google is offering voluntary buyouts to selected employees in five more countries as it seeks to rein in costs while investing heavily in AI.
Former Army Secretary Dan Driscoll has taken a national security-related position at OpenAI, the company said Monday. At a major energy conference in Abu Dhabi, OpenAI CEO Sam Altman and senior UAE officials also announced a partnership focused on bringing advanced AI into the energy sector.
Two opinion pieces argued that economic competition should limit harm to the United States while preventing China’s Communist Party from turning American resources against the country, and that reliable, affordable, secure electricity will be crucial to winning the AI race. The latter argued that AI could reshape the economy, national defense and manufacturing, influencing which countries lead future innovation.
One item also raised a more personal concern: letting someone use your phone or computer can expose private information, including ChatGPT conversations about sensitive matters or plans for a surprise.
