Voters restrict AI data centers

Residents in ten states approved 38 of 44 ballot measures aimed at regulating data centers on November 3. The passed initiatives include moratoriums and bans that limit where and how new facilities can be built.

Redbud Consulting, a polling firm tracking local initiatives, reported the 38-6 margin. Analysts said these rules will not affect data centers already under construction or approved for 2027. The regulations primarily target projects planned for 2028.

In Texas, Democratic challenger Gina Hinojosa defeated the incumbent to become governor. Her victory alters the state’s approach to artificial intelligence infrastructure. Bloomberg reported that Texas is expected to account for more than 41 percent of added data center capacity in 2028.

Hinojosa plans to delay projects until the state passes laws addressing water use, electricity costs, air quality, and property rights. Bloomberg reported that approximately 13 gigawatts of data center capacity in Texas are now exposed to these new rules.

Gordon Johnson of GLJ Research told Bloomberg that projects with power, permits, and steel will continue. However, projects with power but no state environmental permits will slip by 12 to 18 months. Johnson noted that some developers may move projects to Louisiana or Georgia.

Libby Cantrill, head of public policy at PIMCO, said the election results will add friction to the industry. She warned that even without statewide moratoriums, developers will face more time securing permits and making concessions to local communities.