Hassett says data center boom will continue as voters and red tape fail to stop American growth
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Kevin Hassett told CNBC that America’s data center expansion will continue despite state ballot efforts to block new facilities. He said local objections will not derail development, pointed to strong economic momentum, and noted that President Donald Trump remains fully supportive of AI and the industry.
National Economic Council Director Kevin Hassett told CNBC's "Squawk on the Street" that the United States is expected to keep expanding its data center capacity, despite a wave of state ballot initiatives that aimed to restrict such projects. Ballotpedia recorded that majorities voted to limit development in at least 46 of roughly 50 measures on 2026 ballots.
"We respect the localities that decide that's what they want to do," Hassett said. "But America is a big place, and right now, the data centers scheduled over the next couple of years aren't affected by these ballot initiatives."
He added that there remains ample space for further growth and that future expansion is likely to occur in states with supportive governors, while even states currently opposed may eventually change their stance as the benefits become evident.
Hassett linked recent market volatility in the technology sector to uncertainty about how the new political majority might affect data center policy, noting that markets are anxious about potential regulatory shifts. He expressed confidence that the broader economic strength would keep the industry on a growth trajectory, even if the pace slows.
A CNBC voter poll indicated that 56% of midterm voters considered data centers an important issue, with 62% of those viewing it as crucial favoring the Democratic candidate. President Donald Trump, who has promoted artificial intelligence and data centers, reiterated his support for the sector on his Truth Social account, stating he is "100% in favor of Super Intelligence (SI)" and will work with states that wish to develop the industry.