Voters pushed back on AI data centers this week, and Goldman Sachs warns 45% of planned US capacity could be affected. Host Ejaaz Ahamadeen discusses why voters turned on data centers, Texas's new conditions, the market's split reaction, and why an AI bull thinks a slower buildout might be good for AI.
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data centersartificial intelligenceregulationUS
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Related tickers and likely impact
NVDA
• NeutralNvidia
Relevance: low
| Market | US stocks |
|---|---|
| Sector | Information Technology |
| Industry | Semiconductors |
| Market cap | $5.1T |
| Close on 11/04/2026 | 200.28 |
| Change that session | -3.10% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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Results of the U.S. midterm elections could widen the gap in the AI sector: tighter rules on data centers may favor tech giants that already have capacity, while squeezing debt-funded companies trying to catch up. In Texas, governor-elect Gina Hinojosa has proposed a statewide moratorium on new data center permits, though projects already under construction would reportedly be exempt. After the results, Microsoft and Amazon shares each rose more than 6%, while CoreWeave fell around 10%, and Micron and Nvidia dropped 7% and 3.17%. JPMorgan said wider borrowing spreads for neocloud companies, compared with hyperscalers that have more diversified customers and revenue, are a key factor behind the split. BMI warned that a sharp slowdown in data center construction could lead to a bigger-than-expected drop in overall investment, while Nomura said the greater exposure lies in projects planned for 2028.
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Of 41 local ballot measures in 10 states that would have restricted data center construction, voters sided against data centers in all but one, in Harwood, North Dakota, where the city voted against a charter amendment requiring extra review of industrial developments, including data centers. The result came alongside Democratic wins in Ohio, where Sherrod Brown ousted Republican Sen. Jon Husted and Amy Acton defeated Vivek Ramaswamy, and in Texas, where Gina Hinojosa unseated Gov. Greg Abbott. Ohio is also home to OpenAI's planned 8-gigawatt campus, developed by SoftBank and SB Energy with the U.S. Department of Energy, which could cost more than $500 billion in total, with Nvidia also backstopping the project. In a CNBC Voter Poll, 56% of voters called data centers a crucial or major factor in their decision, with Democrats ranking the issue higher than Republicans. Democrats, including Rep. Greg Casar, are calling for AI executives to testify under oath, as hyperscalers such as Alphabet, Amazon, Microsoft and Meta keep spending hundreds of billions of dollars a year on AI infrastructure.
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