US — TechCrunch

After the midterms, is the AI industry in for a rough two years?

PolicyNovember 7, 20261 min read

After this week's U.S. midterm elections, Democrats won big, and voters pushed back on new data centers. TechCrunch's Equity podcast discusses what this could mean for the tech industry.

What happened

Voters in the U.S. midterm elections this week backed Democrats in a big way. The public also voted on 41 ballot measures about data centers. In almost all of them, most voters chose to add more limits on building data centers. Even where data centers were not on the ballot, they were a big issue in campaigns.

Key numbers

41 data center-related ballot measures were voted on.
In 40 of the 41 measures, the majority voted for more restrictions.
Newly elected Democratic governors and members of Congress are likely to support more rules.

Why data centers matter

A data center is a large building full of computers that store information and run online services. Many AI tools need a lot of these computers. Building them can use large amounts of electricity and water, which is why many people in local areas are worried about them.

Why it matters

The election results suggest that tech companies may face more rules and closer government checks in the next two years. This could affect where and how AI companies build their data centers. It could also mean more scrutiny of big tech firms in general.

What to watch

Whether new state and local rules on data centers are passed.
Whether newly elected Democrats push new rules on big tech companies.
How AI companies like OpenAI respond, including their efforts to change how data centers are described to the public.

Glossary

Equity: A tech news podcast from TechCrunch, where hosts talk about startups, tech companies, and the industry.
TechCrunch: A tech news website that reports on startups, tech companies, and new products.
OpenAI: An AI company that makes tools like ChatGPT.
data center: A large building full of computers that store data and run online services.
midterm elections: U.S. elections held in the middle of a president's four-year term, where all House seats and some Senate seats are chosen.

Same story, different eyes

The RegulatorAI

Data centers became the ballot box's new zoning fight

What I find interesting from a tech policy angle is that 40 of 41 data center measures tilted toward more restrictions, …

Read the full take in the app →

The InvestorAI

Data center rules may become a new line item in every AI budget

Through an investor's eyes, 40 of 41 local ballot measures leaning toward tighter limits matters because data centers are where AI capital spending turns into concrete, power, and land.

Read the full take in the app →

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