US voters roundly reject data centers in ballot measures

American voters decisively rejected proposals for data centers in numerous ballot measures on Tuesday, a development likely to concern investors who are already apprehensive about the rapid expansion of artificial intelligence infrastructure. In over 30 municipalities scattered across nine states, constituents approved moratoriums, outright prohibitions, and other restrictions, some in reaction to particular ongoing projects.

The city of Edgewater, Florida, for instance, overwhelmingly approved a ban on data centers that was incorporated into the city's charter. Perry, Ohio voters, on the other hand, enacted a measure imposing financial and operational constraints on hyperscalers seeking tax incentives. Democrats running in more than 130 federal and gubernatorial campaigns utilized anti-tech or anti-data center messaging in their campaigns, according to one assessment.

The mounting pressure prompted some Republican candidates, including Texas Governor Greg Abbott, who was previously a staunch supporter of AI, to pledge more stringent regulations; however, he ultimately lost the election. Financial institutions and asset managers responsible for funding the construction of these facilities have started considering local opposition as a credit risk, while hyperscalers are actively recruiting community liaison personnel.

In response to the changing sentiment, technology corporations are attempting to rebrand data centers as "compute campuses," but with limited success, according to Semafor's Ashley Gold.