US midterm candidates find something to agree on: Reining in datacenters

Datacenter development regulations garnered widespread backing from gubernatorial candidates during the US midterm elections, according to Data Center Watch. Of 74 candidates scrutinized across 36 states that held gubernatorial elections on November 3, 43% supported bans or moratoriums on new projects, while 51% favored additional rules or conditional development.

Support transcended party lines, though Democrats exhibited higher backing (60%) compared to Republicans (30%). Candidates from eight states—Maryland, Maine, Michigan, New Hampshire, Ohio, Oregon, Wisconsin, and Texas—endorsed such restrictions. Texas, buoyed by abundant energy resources and minimal regulations, recently witnessed a surge in datacenter construction, though Governor Greg Abbott imposed a pause prior to his defeat by Democrat Gina Hinojosa in the November 3 election.

These positions hold significance for developers, as governors can influence state regulation, energy policies, and permitting procedures. However, temporary pauses and specific construction limitations may not equate to an outright opposition to all datacenter projects. The rise of AI-related campaign funding has also drawn attention, with the labor-backed organization Guardrails Alliance labeling a super PAC network opposing AI regulation as "largely a non-factor" in the elections due to its perceived political toxicity.

Public opinion regarding datacenters has also shifted, with a Gallup survey revealing that over 70% of Americans oppose their construction in neighborhoods, while a Pew Research Center survey indicated growing concerns over their environmental impact and contribution to increased household energy costs. The majority of candidates opposing datacenters—57%—were opposed, while only 3% supported them, citing concerns over corporate interests, energy consumption, environmental implications, and water usage.