There's a silver lining for data center builders amid the 'blue wave'
Many of the tech executives I’ve spoken to this week see the vote as a rejection of the fringes on both the right and the left — and they’re relieved about that.
The recent surge in opposition to data center construction, driven by anti-AI infrastructure measures, has caused concern among some tech industry observers. However, many experts believe there is a silver lining in the emerging "blue wave" of Democratic victories.
While 40 local and state measures passed this week aim to limit data center development, these laws are unlikely to halt construction entirely. Moreover, they won't impact new computing power from coming online until at least 2029. Instead, the primary effect of these measures is to compel tech companies to offer concessions such as cheaper power, school funding, or stock distribution.
Tech executives interviewed recently expressed relief at the results, viewing the vote as a rejection of extreme viewpoints on both the right and left. They see a potential shift towards a more centrist approach, which could foster better relations between government officials and the tech industry. Both Democrats and tech leaders alike are wary of causing a recession, and recognize that the tech sector remains a significant driver of economic growth.
Although some tech leaders may have made political missteps in recent years, companies like Microsoft, Apple, and Alphabet have generally taken a more measured approach. These firms are not expected to face significant changes due to the new regulations, as they have maintained a balanced stance across both parties. The key takeaway is that the data center buildout will continue, according to National Economic Council Director Kevin Hassett, even after voters indicated their support for limits on AI infrastructure construction.
Written by urgent.news from Semafor's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
