After the midterms, is the AI industry in for a rough two years?
News Source
β’Fri, 06 Nov 2026 17:23:52 +0000
π° What Happened
Democrats won big in this week's US midterm elections. Voters also decided 41 local measures about data centres. In all but one, most people voted for more limits on building them. Even where the issue was not on the ballot, candidates talked about it. New Democratic governors and lawmakers are likely to back tougher rules. TechCrunch's Equity podcast discussed what this means for tech.
Big Tech also expects more questions from Congress.
π The Backstory
AI companies need huge data centres to run their models. These buildings use a lot of power and water. Local groups have complained about bills, noise and land use. OpenAI has tried to rename its data centres to soften the image. The midterm result suggests voters want a say in what gets built near them. Some projects may now face longer planning fights. That could slow new AI capacity in parts of the country.
π― Why It Matters
Data centres can raise power bills and use local water. What voters chose this week may slow new AI builds in their own towns.
Democrats won big in this week's US midterm elections. Voters also decided 41 local measures about data centres. In all but one, most people voted for more limits on building them. Even where the issue was not on the ballot, candidates talked about it. New Democratic governors and lawmakers are likely to back tougher rules. TechCrunch's Equity podcast discussed what this means for tech.
Big Tech also expects more questions from Congress.
AI companies need huge data centres to run their models. These buildings use a lot of power and water. Local groups have complained about bills, noise and land use. OpenAI has tried to rename its data centres to soften the image. The midterm result suggests voters want a say in what gets built near them. Some projects may now face longer planning fights. That could slow new AI capacity in parts of the country.
Data centres can raise power bills and use local water. What voters chose this week may slow new AI builds in their own towns.