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AP: AI data centers took a beating in the midterm elections. A reckoning may be ahead for tech giants
Democrats won key races after campaigns against energy-hungry server farms, with 32 of 34 victorious governors backing stronger regulation or moratoriums, Data Center Watch said.
Following Tuesday's election, Democrats flipped at least five governors' offices and took full control of state governments in six more states: Arizona, Wisconsin, Minnesota, Pennsylvania, Nevada and Michigan, ushering in a wave of candidates pledging to clamp down on energy-hungry data centers.
Voters in 44 municipalities cast ballots overwhelmingly in favor of restricting data centers, with restrictions approved in 44 of the 45 elections where counting was complete, according to polling firm Redbud Consulting.
The Nasdaq sank 11% below its all-time high on Thursday amid investor worries that construction may slow due to increased borrowing costs, as campaigns spent more than $380 million on television ads mentioning data centers.
Wisconsin Gov.-elect David Crowley said he is discussing proposals requiring developers to disclose water and energy consumption, ensuring community support before approval and insulating ratepayers from project costs.
AI giant OpenAI published a framework Thursday asking policymakers to write "clear rules for how the industry builds," while the Data Center Coalition said developers must continue building trust with public officials.