Democratic candidates who campaigned on slowing or stopping data center construction won gubernatorial races in Texas, Georgia and Ohio, challenging the rapid expansion of infrastructure built to support artificial intelligence. The results could put billions of dollars in planned investment at risk.

The victories came amid growing concern about the facilities’ high energy and water use, as well as their effects on air and noise pollution and utility bills. Opposition also featured in local ballot measures, including 21 proposals related to data centers in Ohio.

In Texas, Democrat Gina Hinojosa defeated incumbent Governor Greg Abbott after pledging an immediate pause on data center construction. The state has attracted major technology companies, including OpenAI, Anthropic, Oracle, Microsoft, Google, Meta and Amazon, with tax incentives and access to energy and land.

Abbott had previously promoted Texas as a potential AI hub. In September, however, he directed the state’s environmental agency to temporarily suspend permits for new data centers connected to the electricity grid while an audit is conducted. Hinojosa had called for a broader halt to new AI data center construction until new legal protections are in place.

In Georgia, Democrat Keisha Lance Bottoms, a former Atlanta mayor, promised a temporary statewide suspension of data center projects. Her opponent, healthcare executive Rick Jackson, argued that decisions should be left to local communities. Atlanta has nearly 2.9 gigawatts of data center capacity under construction, according to real estate investment group CBRE, making it the largest construction hub of its kind in the United States, ahead of Northern Virginia.

Ohio’s Amy Acton defeated Vivek Ramaswamy after proposing a conditional freeze on approvals for projects that do not meet strict energy and water consumption standards. In Trenton, voters approved a measure expected to complicate Amazon’s plans for a data center complex, while other local proposals to block or restrict projects were also advancing. In Florida’s Edgewater, voters supported a measure banning data center construction in the city charter by 77% to 23%.

The results reflect a broader political shift: candidates from both parties have broken with President Donald Trump’s support for rapid AI infrastructure expansion. Trump called opposition to data centers, along with wider concerns about AI safety, a “hoax” in September. Before the elections, 26 gubernatorial candidates across 21 states had backed some form of construction pause.

An NBC exit poll found that 56% of respondents considered AI and data centers a “crucial or important” factor in their decision to vote for Congress. The power governors have to change data center policy depends on state laws, and some will need to work with legislatures to implement major changes. Local ballot measures offer voters a direct way to register opposition.

The stakes for technology companies are substantial. Amazon, Meta, Microsoft and Google parent Alphabet are expected to invest a combined total of up to $740 billion in capital expenditure in 2026. Nvidia forecasts that global investment in AI infrastructure will reach between $3 trillion and $4 trillion by 2030.

New York Governor Kathy Hochul set a precedent in July by making the state the first in the country to pause development for a year on data centers with capacity of 50 megawatts or more. Trump criticized that move as a “terrible decision.” Before the election results, BMO Capital Markets analysts said the Texas race and Ohio ballot measures would offer investors a signal of voter sentiment toward data centers, warning that a negative outcome could affect technology company valuations.

Sources: Folha Mercado.