Democrats’ wins raise fears of data centre curbs. Which AI sites are at risk?
About $3 trillion in market value has vanished from S&P 500 companies on Thursday, as investors feared that Democratic gains in the US midterms would slow the AI data-centre boom. Which facilities now face delays in getting permission to build?
The Nasdaq 100 fell 6.4%, and the S&P 500 lost 4.4% on 5 November, according to Reuters. Democrats’ midterm gains in Congress and state capitals raised the prospect of putting the expansion of AI infrastructure to a halt.
Smaller tech companies, who are already struggling to raise capital due to higher interest rates and tighter financial conditions, face even heavier consequences, the news agency reported.
Here are the most visible data centre projects that are already under fire, ranging from a permit freeze in Texas to a vote against two proposed sites in Ohio, as well as Google’s $17 billion project in Wyoming.
Read more: What a Democratic Congress could mean for Central Asia
Texas could extend its permit freeze
According to investment bank Jefferies, Texas accounts for about one-quarter of planned data centre development in the United States. Republican Governor Greg Abbott had already issued a moratorium on new environmental permits while the state determined how much electricity and water the projects would require.
Gina Hinojosa, the Democrat who defeated him on Tuesday, has promised to halt new approvals until state lawmakers pass protections for residents. The legislature meets in January.
Here’s a video with Gina Hinojosa where she visited the people affected by the loud data center in the earlier clip. As a politician, she’s really good, a genuine talent that could become president one day. https://t.co/QPvwW3aYH1
— Jesse Livermore (@Jesse_Livermore) November 6, 2026
Delays are particularly costly for developers who have purchased land, ordered equipment, and promised a customer an opening date but still require permits or a grid connection. A company with locations in multiple states has more flexibility to shift spending or computing work elsewhere.
EdgeConneX rejected by Ohio villagers
In Ashville, Ohio, 82% of voters rejected the terms the village had agreed to use in negotiations with EdgeConneX over two data centres and a gas-fired power plant, according to unofficial results of the vote.
Voters in Trenton approved a ban on building data centers over 25 megawatts, one of at least 14 Ohio communities that approved bans or other restrictions on data center developments on Tuesday. https://t.co/Q2Ka5Tu9IX
— Spectrum News 1 OH (@SpectrumNews1OH) November 5, 2026
Voters in the United States opposed data centre development in 40 of the 41 local ballot measures, according to Ballotpedia. These votes ranged from rejecting specific deals to supporting restrictions on new construction.
Read more: Core AI plans data centre network in Uzbekistan and Malaysia
Google is going ahead in Wyoming
Google says its first data centre in Laramie County, Wyoming, will use air cooling to reduce water consumption.
GOOGLE $GOOGL WILL SPEND $17B ON A NEW DATA CENTER IN WYOMING The site in Laramie County will be Google’s first in the state, per Bloomberg. Google says it will pay for all the power the data center uses. The data center will be air-cooled to limit water use. https://t.co/kS6EBToIiN
— Evan (@StockMKTNewz) November 5, 2026
The sidestory: Google parent Alphabet plans $15 billion AI data hub in India
The company suggests that some of its electricity would be generated from natural-gas fuel cells equipped with carbon capture and promises to cover the cost of the infrastructure required.
