The rapid expansion of artificial intelligence (AI) data centres in the United States is facing growing opposition after voters rejected several projects and supported candidates promising stricter regulations in the November 4 midterm elections. The results have raised questions about the future of Big Tech’s massive infrastructure investments, with communities increasingly concerned about rising electricity bills, water consumption and environmental damage.
Data centres are critical to the development of AI, cloud computing and other digital services. Technology companies, including Amazon, Microsoft, Google and Meta, are investing billions of dollars in new facilities to support growing demand for computing power. However, the scale of these developments has triggered resistance from residents who fear that the benefits may not outweigh the costs to local communities.
The midterm elections brought these concerns into the political spotlight. Data centre development featured in local ballot measures across several states, with voters supporting proposals to restrict construction or temporarily suspend new projects.
Ohio emerged as a major centre of opposition, with at least 14 municipalities approving restrictions or bans on data centre development. In Maine, eight towns backed temporary construction moratoriums, while voters in Emporia, Kansas, approved a ban on high-impact facilities. However, not every proposal succeeded, with residents in Hardwood, North Dakota, rejecting restrictions.
One of the most significant developments came from Piqua, Ohio, where residents voted to recall the mayor and two city commissioners who had supported a proposed Meta data centre. The project involved a potential investment of around $1 billion and a facility with a planned capacity of 1.4 gigawatts. Concerns about its impact on local resources contributed to growing opposition.
The election results could also reshape the regulatory environment in Texas, one of the most important markets for data centre investments. Democrat Gina Hinojosa’s victory over Republican Governor Greg Abbott has raised questions about the state’s future approach to large-scale AI infrastructure projects.
Hinojosa campaigned on temporarily pausing new data centre approvals until stronger protections are introduced for residents. Her concerns include rising household electricity costs, pressure on water supplies and the limited role communities play in decisions involving major infrastructure developments.
Texas is expected to account for nearly 30 per cent of US data centre capacity scheduled to become operational by 2028. Around 13 gigawatts of proposed capacity in the state could face uncertainty if stricter approval requirements are introduced.
Ohio and Georgia are also witnessing political changes that could affect future investments. Newly elected Ohio Governor Amy Acton has supported conditional restrictions on new projects until developers meet stronger requirements. Georgia Governor-elect Keisha Lance Bottoms has also called for a temporary construction pause.
The resistance is not entirely new. At least 45 data centre projects worth approximately $68 billion faced delays or opposition during the second quarter of 2026. The latest election results suggest that local concerns are increasingly influencing state and municipal policy.
For technology companies, additional regulations could mean longer approval processes, higher construction costs and delays in expanding AI infrastructure. Data centres require substantial electricity, reliable water supplies and extensive supporting infrastructure, making them particularly sensitive to local planning decisions.
Some companies have begun responding to these concerns. Amazon has committed $1 billion over five years towards supporting communities hosting its data centres. Microsoft has also pledged to cover electricity infrastructure costs associated with its facilities and improve transparency around its operations.
Meanwhile, major technology companies are facing pressure to demonstrate that their investments will not place an unfair burden on residents. Their ability to secure public support could become as important as obtaining government approvals.
The developments come as Big Tech companies prepare to spend an estimated $720 billion to $740 billion on capital expenditure in 2026, with a significant share directed towards AI infrastructure.
Despite the political resistance, the data centre boom is unlikely to stop completely. Instead, companies may need to reconsider project locations, electricity arrangements and environmental commitments.
The midterm election results highlight a growing conflict between America’s ambitions to lead the global AI race and communities concerned about the local costs of supporting it. The next phase of AI infrastructure expansion could depend on whether technology companies can balance their investment plans with the interests of residents.
