Midterm Voters Approve Datacenter Bans in 10 States

American voters voted to limit datacenter expansion across 10 states in Tuesday’s midterm elections. Measures appeared on ballots in at least 40 jurisdictions, with residents approving nearly every proposal to pause or ban new construction.

In Ohio, 14 municipalities passed restrictions or bans on development. Sunbury approved measures affecting an Amazon proposal for a $2 million facility. Maine voters approved temporary moratoriums in eight municipalities. In Emporio, Kansas, residents approved a ban on high-impact centers after a 1,000-acre gigawatt-scale project was proposed nearby.

Hardwood, North Dakota, was the only jurisdiction to vote down a datacenter restriction measure. The city has a population of fewer than 1,000 residents.

Newly elected leaders in three states pledged to implement moratoriums on large facility construction. Gina Hinojosa, who defeated Greg Abbott to become governor of Texas, promised to increase community input and restrict development. Amy Acton, the newly elected governor of Ohio, and Keisha Lance Bottoms, the governor-elect of Georgia, made similar pledges.

Texas represents a major shift in policy, as the state previously welcomed datacenters under Abbott. Abbott had recently demanded an end to electricity subsidies for the facilities. Hinojosa is viewed by industry analysts as a strong opponent of the sector.

Elon Musk, who spent over $400 million supporting conservative candidates, posted on X that space-based datacenters looked appealing. Analyst Dan Ives stated that the election results signal a slower pace of buildout. He noted that 25% to 30% of datacenter capacity is expected to come from Texas.

Ives said Democrats taking control of the Senate would create hurdles for AI and tech legislation. He identified Hinojosa’s election as a primary concern for investors in the artificial intelligence trade.