Constellation Research founder R “Ray” Wang joins “Making Money” to analyze the post-election market rally, potential policy implications for AI data centers, and investment opportunities in tech stocks and hyperscalers.
Voters in at least 10 states sharply criticized data center expansion in Tuesday’s midterm elections, supporting restrictions and rejecting development proposals amid growing concerns about electricity costs, land use and the rapid construction of artificial intelligence infrastructure.
Voters supported restrictions or rejected pro-development measures in all but one local ballot measure in 10 states, according to an analysis by Ballotpedia and results compiled by CNBC.
The Washington Post separately reported that voters in at least 38 jurisdictions passed measures limiting or blocking data centers. Many passed with wide margins, underscoring the intensity of opposition in communities where the projects were directly on the ballot.
The findings represent a growing challenge for an industry that is investing billions of dollars in AI infrastructure, as communities increasingly weigh the economic benefits of new developments against concerns about rising utility bills, water consumption, noise and local control.
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A drone photo shows a five-story former industrial building on East Vernon Avenue being demolished for redevelopment as the proposed CoreSite data center, right, across from Vernon City Elementary School in Vernon, Wednesday, Nov. 4. (Allen J. Schaben/Los Angeles Times via Getty Images/Getty Images)
The opposition has already disrupted projects beyond the ballot box. More than 145 data center projects were delayed or canceled nationwide as of early August, according to S&P Global figures cited by the Washington Post, which reports that public opposition was responsible for the vast majority of those setbacks.
Ohio, a major hub of data center development, has seen some of the most breakthrough results.
In the city of Defiance, voters approved a charter amendment limiting data center construction by a margin of 64.73% to 35.27%, according to unofficial county election results.
Pataskala voters approved a charter amendment related to data centers by a margin of 73.62% to 26.38%, while Granville voters supported a similar amendment, 82.45% to 17.55%.
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In Ashville, voters rejected a data center referendum by an even wider margin, with 81.61% voting against the measure and 18.39% voting for it.
The backlash has extended to statewide political campaigns, where data center development has emerged as an issue alongside broader concerns about affordability and economic growth.
The Stargate Oracle AI data center campus is seen August 26, 2026 in Abilene, Texas. (Brandon Bell/Getty Images/Getty Images)
In Texas, Democrat Gina Hinojosa defeated Republican Gov. Greg Abbott after campaigning on a proposed moratorium on new data center projects and stronger protections for the environment and electricity ratepayers.
Ohio elected Democrat Amy Acton as governor. She supports a moratorium and stricter regulations, while Georgia Governor-elect Keisha Lance Bottoms has made greater accountability for data center developers a central part of her campaign.
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Polls taken before the election suggested that opposition to the new data centers was cross-party.
A Washington Post-ABC News-Ipsos poll conducted before the election found that seven in 10 Americans, including a majority of Republicans, opposed building new data centers in their communities.
The race to build AI infrastructure is accelerating as concerns grow about centralized technological power. (Noé Berger/Getty Images)
The Post also cited an Election Day poll showing that 56% of voters considered artificial intelligence and data centers a major or crucial factor in their vote, although they ranked last among the five issues surveyed, behind concerns such as government corruption, the war in Iran and the cost of living.
Industry representatives, meanwhile, say investment in data centers can bring substantial economic benefits to the communities that host the facilities.
President Donald Trump is highlighting the growing demand for construction workers and skilled workers as trade schools face waiting lists. AI data centers and manufacturing are driving a massive workforce boom across the country.
“Affordability, jobs and the economy are priorities for Americans across the country,” said Dan Diorio, executive vice president of state policy and government affairs at the Data Center Coalition. He said data centers can generate jobs, local tax revenue and investment.
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“The data center industry is committed to advancing America’s digital infrastructure, supporting energy reliability and affordability, and promoting responsible long-term economic development,” Diorio said.
As public attention intensifies, some major tech companies are taking steps to address concerns about the costs of expanding AI infrastructure.
OpenAI said Thursday it would pay the full cost of powering the data centers it owns and operates, seek community input, publish construction plans and avoid relying on nondisclosure agreements with public officials. The company also released a draft policy encouraging lawmakers to adopt similar standards.
A CloudHQ data center in Ashburn, Virginia on May 31, 2026. (Lexi Critchett/Bloomberg/Getty Images)
“What we’re doing with this plan is really presenting the best lessons that we’ve learned and committing to applying them as we move forward,” Chris Lehane, OpenAI’s director of global affairs, told reporters, according to CNBC.
The announcement follows Tuesday’s election results, although the plan has been in the works since August and builds on the companies’ previous commitments to protect taxpayers and address community concerns.
OpenAI seeks to scale rapidly to meet demand for AI services and has targeted hundreds of billions of dollars in IT infrastructure spending by 2030.
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Not all communities voted to restrict development. In Harwood, North Dakota, about three-quarters of voters rejected proposed restrictions on industrial development, according to the Washington Post.
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