Democrats Push Data Center Limits After Midterm Election Gains

Sen. Bernie Sanders called for a national moratorium on data center approvals after Democratic gains in the Nov. 3 midterm elections, sharpening a policy fight over AI infrastructure that spans Congress and state governments.

“National data center moratorium now,” Sanders, an independent from Vermont who caucuses with Democrats, wrote in a post on X. He pointed to local ballot measures where voters approved restrictions on data center projects.

Rep. Yassamin Ansari, D-Ariz., posted that pausing AI development should be a top priority for the Democratic House majority on its first day. Rep. Greg Casar, D-Texas, chair of the Congressional Progressive Caucus, amplified her post and endorsed the call.

Texas Gov.-elect Gina Hinojosa, a Democrat who defeated incumbent Republican Gov. Greg Abbott, pledged in a video posted in late October to halt data center approvals until state lawmakers pass protections for Texans. Data centers featured in her campaign, though Hinojosa did not address them directly in her victory speech.

Pennsylvania Gov. Josh Shapiro signed an executive order in August aimed at slowing data center development. In his victory remarks, he said local communities should have the final say over decisions affecting them.

Other Democrats who won elections also emphasized local control. South Carolina Democrat Annie Andrews, who flipped a Senate seat, said in her victory speech that people who live in communities should make decisions about them. Ohio Democrat Sherrod Brown, who is returning to the Senate after defeating incumbent Republican Sen. Jon Husted, said in his victory speech, “I do not work for data centers.”

A voter poll found 56% of respondents considered AI and data centers a crucial or major factor in their vote. Among those voters, 65% said they voted for a Democratic candidate for Congress.

Shares of companies exposed to the AI buildout fell Wednesday after the election, with losses deepening Thursday amid investor concern that Democratic victories could affect construction. Semiconductor stocks led the decline.

Ansari said the pause should be a priority for the House majority on its first day, while Hinojosa tied her proposed moratorium to state lawmakers passing protections for Texans.