At the moment, Harwood, N.D., stands alone.

The small city of around 800 residents, a suburb of Fargo, is the only jurisdiction in the U.S. during the Nov. 3 elections that so far has voted in a manner that would expand data center development.

Of the 47 initiatives on ballots involving data centers, 44 that called for restrictions passed. Two others remain undecided and are leaning toward restrictions.

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Only one — the charter amendment in Harwood, requiring independent review before approving large industrial projects — was voted down. It marks the single ballot victory, so far, for the data center industry in the midterms, according to a report from Redbud Consulting.

It is difficult to assess the impact of this near-complete grassroots rejection of data centers. Politicians who won office, in part by opposing data centers, have tended to be short on details about their plans.

But it’s clear that from small towns to big cities, the nation’s electorate has rejected plans for a massive data center rollout that was announced during the past few years. According to the Associated Press, 56% of voters across the country said data centers were either crucial or a major factor in how they voted.

States that once pushed to be leaders in data center development are now backing away. Texas is one of the main examples, as a virtually unthinkable blue wave in the Lone Star State has changed the equation for data center developers.

Republican Gov. Greg Abbott, who was once one of the nation’s top boosters for developing data centers, began backing away from that position during his campaign for reelection in Texas.

But his loss to now Governor-elect Gina Hinojosa has added even more uncertainty to the developments. On the campaign trail, Hinojosa, a Democrat, called for a pause on data center construction until new regulations can be passed overseeing the operations. The governor-elect’s stance is crucial because Texas, Georgia and Ohio account for more than 40% of all planned data center capacity in the U.S., according to The Wall Street Journal.

Such changes are happening all over the country. Thirty-two of the 34 victorious candidates for governor in races that have been decided support stronger regulations or restrictions on data centers. Twelve of the 34 support bans or moratoriums on their development.

Major economic impacts

This is no small economic issue. Tech firms are expected to spend $700 billion this year alone to build and maintain data centers across the country, and the U.S. development pipeline for the facilities is estimated to be approaching $2.3 trillion.

The sector may add as much as 1.9% to the U.S. gross domestic product this year. Since 2023, the development of the nation’s artificial intelligence infrastructure has created an estimated 750,000 new jobs.

At the same time, data centers have pumped millions of dollars into communities across the country in the form of taxes, new jobs and support for local cities and towns. The shares of major technology companies tied to the AI boom have also played a major role in the recent run-up in the stock market.

But that stock boost is in jeopardy, with Wall Street suffering a major market correction following the election. The changing political winds could impact between 25% and 35% of next year’s data center build-out, said one expert.

Despite the financial impact of the AI boom, some politicians have said that opposition to data centers could alter elections for some time to come. Many of those opposed to the developments point to the massive amount of energy and water they use and possible pollution. In many parts of the country, water is becoming an increasingly precious resource.

Clayton Tucker, who was elected as the first Democratic state agriculture commissioner in Texas since 1986 this week, said ranchers were concerned that data centers presented an “existential threat” to their dwindling water resources, the Associated Press reported.

“You know, there’s an old saying around here that ‘whiskey’s for drinking and water’s for fighting,’” Tucker told the AP. “And that’s exactly what happened.”