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Home › Business ›Data centers got a slap in the face…

Data centers got a slap in the face at the ballot box. These key votes show how.

· · 2 min read
  • Data centers got a big fat “no” from the American people on Tuesday.
  • Dozens of local elections included referendums on their construction.
  • Democrats broke through in Texas, which is home to hundreds of data centers.

NBC News’ exit poll found that 76% of voters would oppose the construction of a new data center in their community, and 56% said AI and data centers were a crucial or major factor in their vote for Congress.

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As well as governors and senators who voiced opposition to data centers winning, ballots included referendums on their construction.

Goldman Sachs economists said Democratic wins at the state and local levels will likely lead to “short-term data center moratoria, potentially affecting about 45% of planned US data center capacity expansion.”

More than 30 direct votes against data centers passed

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Dozens of cities and small towns held referendums in which data centers were directly on the ballot.

As of 8 a.m. ET, voters had approved 33 ballot measures restricting data centers, versus one allowing them, according to an analysis by Redbud Consulting.

One measure stands out as being linked to a specific project. EdgeConneX wanted permits from the town of Ashville to build two data centers on a 195-acre property.

However, 82% of its 1,800 voters rejected a resolution to proceed with the development of data centers and an associated natural gas facility.

Americans look set to vote overwhelmingly against data centers in many of the referendums.

For example, in Alhambra, a city in Los Angeles County, a measure to ban data centers is also on track to be approved by 82% of voters.

A blue swing in data center hot spot Texas

Texas was one of the clearest examples of the “blue tsunami,” in which Democrats exceeded expectations. It’s also a major location for data centers, including Stargate’s flagship site plus two others under development.

The gubernatorial race was a particular upset, where Gina Hinojosa, the Democratic candidate, beat the incumbent Greg Abbott. She will be the state’s first Democratic governor since 1995.

Her campaign included a promise to immediately pause data-center development in the state.

With 96% of the votes counted, Hinojosa had a 7-point lead, per the Associated Press — an 18-point swing from the last gubernatorial election in 2022.

James Talarico, the Democratic senator-elect, has argued that data centers are contributing to the cost of living, including by increasing utility bills. He also wants to create an “AI dividend” for people to share in AI companies’ profits.

‘Data Center Alley’ swings further to the Democrats

Loudoun County has some 250 operational data centers, and over 100 more planned.

While many analysts expected the state to stay blue, Democratic Sen. Mark Warner extended his majority.

Statewide, there was a 17-point swing compared to the 2024 presidential election.

With 97% of votes counted in Loudoun County, Warner received 69% of the vote. That’s a 21-point swing compared to 2024, and an 11-point swing from the state’s last Senate election in 2020.

Read the original article on Business Insider

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Nairavoice
Contributor at NairaVoice.com.ng