The Midterms Just Put Data Centers — and Big Tech — on Notice
Voters backed restrictions on data center development almost everywhere they were on the ballot, and newly elected Democrats look ready to regulate AI.
This week's midterm elections delivered more than a political shift. According to TechCrunch, they delivered a message to the technology industry: the data center boom now faces real political resistance, and the AI companies driving it should expect more scrutiny.
Voters decided 41 data center-related ballot measures on Tuesday, TechCrunch reported. In all but one, the majority voted to impose more restrictions on data center development. Even where data centers were not directly on the ballot, they were a major talking point — and newly elected Democratic governors and members of Congress look likely to support additional regulation.
A backlash years in the making
The results land after years of rapid data center expansion, as AI companies race to build the computing capacity needed to train and run their models. The facilities consume enormous amounts of power and water, and communities near proposed sites have increasingly pushed back. Tuesday's votes suggest that pushback has now become a mainstream political force.
The hosts of TechCrunch's Equity podcast — Kirsten Korosec, Sean O'Kane and Anthony Ha — discussed what the election means for the tech industry beyond data centers, including increased government scrutiny of Big Tech more broadly. OpenAI, for one, is already trying to rebrand data centers, according to the discussion, a sign that the industry knows it has an image problem.
A crowded week for tech news
The election was not the only tech story of the week. The podcast also covered Google's first satellite data center, major layoffs at design software company Canva and website builder Squarespace, Marvell's $115 billion acquisition of Lumentum, and CrowdStrike's acquisition of two AI security startups.
For the AI industry, though, the midterm results may prove the most consequential development. A sector that has grown used to moving fast and building big now faces voters and politicians who want a say in where — and how quickly — that growth happens.
Written by the BidAsk Newsroom. Based on reporting from the sources below.
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