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AI buildout in peril? About 40% of US planned data center capacity may hit pause

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AI buildout in peril? About 40% of US planned data center capacity may hit pause

Data centre opposition had been building across the country, one moratorium or blocked project at a time. Then, virtually overnight, the midterm election tilted a broad swath of the regulatory map against the AI buildout.

Newly elected governors in Ohio, Georgia, Michigan, New Mexico and Texas campaigned on a promise to stop — or at least pause — data centre construction statewide, while those in New York and Oregon pledged to prolong pauses already in place. Gubernatorial candidates calling for a moratorium on data centres also lead in Alaska and Kansas, though those races have not been called.

All told, about 40% of pending data centre capacity in the US is planned to be built in states where newly elected governors have promised to stop or pause such construction, according to data from Cleanview, a market intelligence company. That’s on top of 46 local ballot measures approved or on track to pass that also stall development, according to Bloomberg Economics; at least 17 of those are outright bans on large-scale data centres.

“It was obviously not a very good night if you’re a data centre developer,” said Justin Teresi, a Bloomberg Intelligence policy analyst.

The political victories underscore the growing voter backlash against the massive industrial warehouses crunching ChatGPT and Claude queries. The potential moratoriums threaten development plans for a host of tech giants frantically trying to build more of that computing capacity.

Investors braced for the fallout. 3 trillion in market value.



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