Data center opponents emerge as big midterm winners in Texas and Georgia, Reuters reports

Opponents of data centers were among the biggest winners of the Democrats’ midterm victories, according to a Reuters analysis published Wednesday, Nov. 4. In governor’s races in Texas and Georgia, Democrats who campaigned in part on a moratorium on data center development won offices the party had not held for decades, Reuters said, and investors told the news agency the results were likely to bring tougher regulation.

The Associated Press called control of both the House and the Senate for Democrats overnight. Some House and Senate races were still uncalled as of early Wednesday, and Reuters said the size and breadth of the Democratic wave was still coming into focus.

Reuters reported that Democrat Gina Hinojosa ousted Texas Governor Greg Abbott and that Keisha Lance Bottoms won the Georgia governor’s race. Texas accounts for about a quarter of U.S. data center capacity due online by 2030, according to a GLJ Research estimate cited by Reuters. Bloomberg reported that developers in Texas already faced a suspension of approvals under Abbott, who halted data center environmental permits in September. Bloomberg said Hinojosa repeatedly called for an immediate moratorium during the campaign and described Abbott’s vows to rein in operators as “nothing more than an election year stunt.”

Bottoms campaigned on a temporary statewide pause on new data center construction to study effects on utility bills, the environment and communities, the Georgia Recorder reported in September. She has said she does not support a permanent halt. Reuters cited CBRE as saying Atlanta is the most active data center construction market in the country.

“The Democrats will likely push for greater regulation,” Nick Ferres, chief investment officer of Vantage Point Asset Management, told Reuters. Some analysts told Reuters that slower U.S. construction would not necessarily signal weaker demand for AI or computing power. In its markets report, Reuters said analysts doubt any legislation could meaningfully stall construction, but that a Democratic-led Congress raises the prospect of more hearings and investigations into the AI buildout.

Bloomberg Government reported that Democratic control is poised to increase scrutiny of companies building the most advanced AI models, while the party lacks consensus on regulation and faces possible vetoes from President Donald Trump.

Before the vote, OpenAI said it planned to push for state laws giving residents a say over data center projects, Axios reported, as AI Tech Daily covered on Tuesday, Nov. 3.

Data center opponents emerge as big midterm winners in Texas and Georgia, Reuters reports

Sources