EL7.AI
StocksMedium•9 November 2026•
4 min read

44 of 45 Local Ballot Measures Approved Data Center Restrictions After Elections

Key Facts

1Data center restrictions were approved in 44 of 45 local ballot measures whose counts were completed.
232 of 34 winners in gubernatorial races supported regulation or tighter restrictions, and 12 backed a ban or temporary moratorium.
3Campaign spending on TV ads mentioning data centers exceeded 380 million dollars, with Democrats spending more than three times as much as Republicans.
4The S&P index rose 1.1% on November 9, while CoreWeave fell 0.3% after dropping 15.4% the previous week.

Restrictions on data centers were approved in 44 of 45 local ballot measures whose counts were completed after the U.S. midterm elections, the Associated Press reported, citing the Redbud Group. The group tracked 47 measures across 44 municipalities in 12 states, including 21 in Ohio, 8 in Maine, 7 in Illinois and 4 in Kansas. The results came as Democratic figures, including Sen. Bernie Sanders, renewed calls for a halt to construction. Sanders this week called for an “immediate national moratorium on data centers,” according to The Guardian. The pressure combines national political demands with local decisions affecting project permits and development terms.

Election results showed the issue gaining prominence in state races. The Associated Press said 32 of the 34 winning candidates in decided gubernatorial races supported regulation or tighter restrictions on data centers. Twelve of those winners backed a ban or temporary moratorium. Democrats also flipped at least 5 governorships and gained full control of the governments of 6 additional states: Arizona, Wisconsin, Minnesota, Pennsylvania, Nevada and Michigan. States where governorships changed from Republican to Democratic control included Texas, Ohio, Georgia, Nevada and Iowa, which are home to important data center sites, the agency reported.

In Texas, Clayton Tucker, the first Democrat elected the state’s agriculture commissioner since 1986, said his pledge to resist data center development was a decisive factor in his victory. Tucker linked opposition to ranchers’ concerns that the facilities could threaten water supplies. That reflects a shift in the debate from AI expansion to the infrastructure’s effects on resources and the communities hosting it. The AP Voter Poll showed that about three-quarters of U.S. voters oppose building a new data center in their communities. Campaigns brought the issue to television screens: spending on ads mentioning data centers exceeded 380 million dollars during the 2026 election season, with Democrats spending more than three times as much as Republicans.

At the national level, Ansari drew a distinction between AI development and the construction of data centers. Rep. Yassamin Ansari called for a pause on advanced AI development, regulation of the industry and a ban on superintelligence to top the Democratic Party’s agenda on its first day. The Guardian quoted her as saying: “A pause on advanced AI development must be at the top of the Democratic Party’s agenda on day one, alongside regulating this out-of-control industry and banning superintelligence.” Sanders separately called for a national moratorium on data centers. The two calls show that the political debate encompasses two connected tracks: one focused on building data centers, the other on AI development and regulation.

Voter pressure has been accompanied by regulatory moves at the state level. New York Gov. Kathy Hochul signed an executive order temporarily suspending state environmental permits for new hyperscale data centers for up to a year, pending the development of a regulatory framework. Hochul said developing these centers could raise utility bills and deplete natural resources, and that the state would set new development standards. The impact of permitting has become clearer in public debate as states seek to balance infrastructure expansion with energy and resource costs. By contrast, Meta Vice Chair Dina Powell McCormick told The Wall Street Journal that building data centers “will become harder” after the vote.

Regulatory concerns were reflected in stocks during mixed sessions throughout the week. On November 4, data center operators’ shares fell before the market open, with Core Scientific down 2.8% and Iren down 1.4%, according to Reuters via Investing.com. On November 9, the S&P index rose 1.1% and was on track for a second consecutive day of gains, following losses the previous week tied to concerns that construction of AI data centers could slow, the Associated Press reported. CoreWeave shares, however, fell 0.3% that day after declining 15.4% during the previous week. The agency said investors fear government restrictions could reduce the industry’s purchases of AI chips, electricity and other services.

The federal legislative path remains uncertain. The House was expected to vote in November on legislation to accelerate reviews of energy and infrastructure projects, but the Brookings Institution said it was unclear whether there were enough votes for passage. Meanwhile, analysts cited by Reuters questioned whether any legislation could meaningfully slow data center construction, while expecting more hearings and investigations into AI expansion. Chip and data center stocks fell on November 4, and EL7 data showed three related stories on that date, including coverage of CoreWeave shares falling amid regulatory concerns. The market’s next test will be whether election calls translate into tighter rules and permits.