US voters back data-center critics as 15 Ohio municipalities approve restrictions

Candidates promising to curb AI data-center development won in Texas, Georgia and Ohio in the November 3 US midterms, Euronews reports. But the result is not one sweeping construction ban: incoming leaders campaigned on different restrictions, while voters in 15 Ohio municipalities approved bans or other limits directly.

Local ballots deliver restrictions directly

The election gave residents two routes to influence the buildout: choosing candidates who want tighter rules and voting on development measures themselves. The Washington Post’s election-day tally identified at least 40 jurisdictions nationwide voting on data-center measures. Many proposed temporary or permanent bans, making the facilities themselves—not just candidates’ positions—a direct ballot question.

Euronews later reported restrictions in 15 municipalities. Those restrictions included limits as well as bans, not 15 outright prohibitions.

Texas puts a construction pause on the agenda

In Texas, Gina Hinojosa defeated Governor Greg Abbott after calling for an immediate moratorium on data centers, according to AFP’s report published by Yahoo Finance. Her campaign proposal was to stop new development until the legislature could establish protections and give communities a say over whether and how facilities arrive.

Hinojosa also urged an end to data-center tax exemptions. James Talarico, whom AFP reported had won a Texas Senate seat, supported ending those exemptions too. The two positions target different parts of the development bargain: a moratorium addresses whether construction proceeds, while removing exemptions changes the tax treatment offered to the industry.

The state's significance extends beyond these races. Bloom Energy calculations cited by AFP project that Texas will account for nearly 30% of US electricity demand dedicated to AI operations by 2028.

We need an immediate moratorium on data centers to last until the legislature can meet to put in place real protections so Texans can have a seat at the table to decide if and how data centers come into their communities

Gina Hinojosa, during the campaign, quoted by AFP

A pause is not the only proposed remedy

Georgia and Ohio add different versions of the same policy pressure. AFP reported Democratic gubernatorial victories in both states, but their incoming leaders’ positions were not interchangeable:

• Georgia governor-elect Keisha Lance Bottoms advocated a temporary statewide pause and requirements that large customers bear their infrastructure costs, according to SPI Asset Management’s Stephen Innes, quoted by AFP.
• Ohio governor-elect Amy Acton committed to a tougher regulatory framework for data-center development, AFP reported.

Those proposals address concerns about the resources facilities consume. AFP described public backlash over energy and water provision, including fears that the fresh water used to cool servers could contribute to local shortages. Bottoms’s cost-bearing proposal addresses another part of that dispute: who pays for the infrastructure required to serve large customers.

Patrick Munnelly, a market strategist at Tickmill Group, told AFP that tougher rules could lead investors to demand higher returns before backing projects.