Voters reject data center expansion in 40 of 41 ballot measures, reshaping AI buildout outlook

In the 2026 midterm elections, voters rejected data center expansions by passing 40 of 41 local ballot measures across 10 states. Motivated by concerns over utility bill spikes, water usage reaching up to 10 million gallons daily per facility, and grid strain, electorate pushback threatens to delay up to 60% of planned 2028 U.S. computing capacity. Key gubernatorial victories in Texas and Ohio strengthen moratorium efforts, forcing tech giants like OpenAI, Meta, and Microsoft to offer local financial concessions and infrastructure investments to salvage their AI buildout plans.

2026 ballot measure and poll results on data centers

• ▪Voters in the 2026 midterm elections passed 40 of 41 local ballot measures in 10 states that place restrictions on AI data center construction
• ▪The only data center ballot measure that passed occurred where voters rejected a charter rule requiring additional municipal review
• ▪NBC's polling during the 2026 midterms indicated that 75 percent of voters opposed data centers, with over half citing AI and data centers as a major factor in their vote

Voter concerns and polling

• ▪Voters in 2026 supported data center restrictions and anti-AI candidates due to concerns over rising local energy bills, water resource depletion, and air pollution
• ▪A CNBC Voter Poll found that 56 percent of voters in the 2026 midterms viewed data centers as a crucial or major factor in their voting decisions, with Democrats ranking the issue higher

Democratic political responses and proposed moratoriums

• ▪OpenAI's planned 8-gigawatt, $500 billion PORTS-Pike Technology Campus in Ohio, developed with SoftBank and SB Energy, faces new state oversight after Democratic Governor-elect Amy Acton endorsed a conditional moratorium
• ▪Representative Greg Casar, chair of the Congressional Progressive Caucus, publicly called for House Democrats to compel AI company chief executive officers to testify under oath following the 2026 elections
• ▪Democratic Governor-elect Gina Hinojosa promised a moratorium on Texas data center construction until state legislation passes regulating impacts on water, electricity, air, and property rights

Tech company strategies to appease local communities

• ▪OpenAI Chief Global Affairs Officer Chris Lehane announced on November 5, 2026, a Compute Campus Policy Blueprint pledging tens of millions of dollars for local school lunches, parks, and first responders
• ▪Technology firms including Amazon, Meta, and Microsoft are offering community financial concessions, infrastructure funding, and rebranding data centers as compute campuses to overcome voter opposition
• ▪Tech operators like Meta and SpaceX have allocated $100 million in Kuna, Idaho, and $80 million in Memphis, Tennessee, respectively, for local municipal water treatment and recycling facilities

SpaceX Colossus data center

• ▪SemiAnalysis reported that SpaceX updated its estimate for 2027 data center buildout to approximately 13 gigawatts of capacity despite ongoing environmental lawsuits regarding gas turbines at its Colossus facility in Memphis, Tennessee
• ▪SpaceX's Colossus 1 data center in Memphis, Tennessee, has a municipal water allocation of up to 1.28 million gallons per day from Memphis Light, Gas and Water