Tuesday’s (Nov. 3) political earthquake could produce aftershocks that will be felt by the artificial intelligence (AI) industry in 2027 and beyond. Democrats’ coast-to-coast sweep of congressional races and governorships will hand the gavel to critics of the industry’s free hand from regulators in key committees on both sides of the Capitol and put data center skeptics in governors’ mansions in half a dozen or more states. It could also cast a chill over the data center build out in multiple states and municipalities.
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Nowhere was the ground-shaking felt more strongly than in Texas. The Lone Star State elected its first Democratic governor in 36 years in Gina Hinojosa, who ousted the incumbent Republican, Greg Abbott. Hinojosa campaigned on keeping a statewide moratorium on data center construction in place until lawmakers tackle their impacts on water, electricity, air and property rights in the legislative session that ends in mid-2027. According to research firm SemiAnalysis, a hold of more than six months would bring extended delays to projects in Texas, which on paper accounts for 41% of new U.S. capacity in 2028, Axios reported.
Texas also elected its first Democratic U.S. senator in more than three decades in James Talarico, who campaigned on giving local communities more say on data center construction and forcing developers to pay for their own electricity and water.
Opposition to data centers proved a galvanizing issue for voters around the country.
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