Democrats push for AI and data-center limits after midterm victories

After Tuesday’s midterm elections, several Democratic lawmakers announced plans to curb the expansion of artificial-intelligence projects and data-center construction. Senator Bernie Sanders (I-Vt.) posted on X that recent local referendums showed support for restrictions, writing, "National data center moratorium now." He added that Americans are concerned about the environmental and employment effects of large-scale data facilities.

Representative Yassamin Ansari (D-Ariz.) also used X to call for a pause on AI development as a priority for the Democratic House majority, a sentiment echoed by Representative Greg Casar (D-Tex.), chair of the Congressional Progressive Caucus, who replied, "Yes!"

A CNBC voter poll indicated that 56% of respondents considered AI and data-center issues a decisive factor in their vote, and 65% of those voters supported Democratic congressional candidates.

Market reactions were mixed, with semiconductor-related stocks falling after the election. The iShares Semiconductor ETF (SOXX) dropped nearly 9%, Nvidia fell 8%, and Advanced Micro Devices slipped more than 14%.

Democrats who won key races also highlighted opposition to big-tech influence. South Carolina Senator-elect Annie Andrews launched a campaign website that criticized her opponent as a “data center” candidate and, in her victory speech, stressed community-based decision-making over corporate interests. Ohio Senator-elect Sherrod Brown told supporters, "I do not work for data centers." Pennsylvania Governor Josh Shapiro, who previously signed an order to slow data-center development, reiterated that local residents should have the final say on such projects.

Texas remains a focal point for data-center growth, accounting for roughly 27% of planned capacity, according to Wells Fargo. While Texas-elect Democrat Gina Hinojosa did not mention data centers directly in her victory remarks, the issue featured prominently in her campaign.