11/6/2026

AI Industry News: After US Midterms, 40 of 41 Local Votes Back Data Center Limits; Focus Turns to States, Localities

AI業界ニュース：米中間選挙後のAIデータセンター　住民投票は41件中40件が制限の方向、今後の焦点は州と地方に

In the US midterm elections on November 3, 40 of 41 local ballot measures on data centers went toward limits, and several states elected governors who promised pauses or conditions. Federal law has not changed, however, and demand has not gone away. As of November 6, we cover where results stand, what changes and what does not at state and federal level, how industry reacted and the links to Japan.

Two Sheep compiles major developments in the AI industry from company announcements, media reports and other public information. This article looks at what the US midterm elections of November 3, 2026 mean for the future of AI data centers, as of November 6, 2026. It follows our November 4 article. All election results are unofficial and have not been certified. This article does not evaluate any party or candidate.

Key Points

Democrats have reportedly won majorities in both chambers of Congress (unofficial, some races uncalled). With the president's veto still in place, it is unclear whether nationwide limits could pass soon
All 41 local ballot measures on data centers on November 3 now have results, and 40 went toward limits (Ballotpedia, unofficial). Each applies only locally, and 9 were non-binding advisory votes
Candidates promising pauses or conditions won governorships in Texas, Georgia, Ohio and elsewhere. These are still promises. In Texas, a pause by the current Republican governor is already in effect
In a voter survey, 76% opposed a new data center in their community, but only 23% called the issue crucial to their vote for Congress. As far as we could find, no data shows data centers decided the election
Many analysts quoted so far expect delays and higher costs rather than a collapse in demand. We found no report of a change to Japanese companies' US plans

1. Election Results (as of November 6)

All of the following are unofficial, and the figures may change.

Senate: AP reported that Democrats retook the majority. NBC News's count stood at 54 Democrats, 44 Republicans and 2 uncalled (Mississippi and Alaska) at 12:40 a.m. ET on November 6
House: Democrats have reportedly secured a majority. NBC News's count at the same time stood at 249 Democrats, 157 Republicans and 29 uncalled. NBC separately estimates Democrats will finish with at least 258
Governors: AP reported that Democrats flipped at least five governorships, naming Texas, Ohio, Georgia, Nevada and Iowa. NBC still shows Kansas and Alaska uncalled
Timing: The new Congress begins in January 2027. Until then the current Congress continues, with Republicans still holding the Senate majority

2. Local: Ballot Measures and Recalls

Ballot Measure Results

Overall: Ballotpedia's list now shows results for all 41 measures in 10 states on November 3. Of the 28 where a yes vote limits development, 27 passed, and all 13 where a yes vote favors development were defeated. The only measure that did not go toward limits was in Harwood, North Dakota
Content: In Ballotpedia's pre-election grouping, the 28 included 17 construction bans (12 of them with size thresholds) and 3 moratoriums, all of which passed
Ohio: All 21 measures in 18 jurisdictions went toward limits. This replaces the partial count of "at least 14 municipalities" in our November 4 article. Bans on data centers above 25 MW passed in Sunbury and elsewhere
Different counts: Another tally (Redbud Consulting, via AP) lists 47 referendums in 12 states, with restrictions passing in 44 of the 45 counted. The scope differs, so this article uses Ballotpedia's figures

Local votes for 2026 are not over. Clarksville, Arkansas votes on December 1 on related bond authorizations, and Mandan, North Dakota votes on December 15 on banning data centers of 25 MW or more.

Limits of These Votes

Ballot results apply only within each locality, 9 were advisory only, and they may not stop every project already under way.

Piqua, Ohio: A charter amendment banning data centers above 25 MW passed with 66.7%, but the local paper reports that its effect on a Meta project, for which the city already has development agreements, is unclear
Urbana, Ohio: A construction ban passed with 77%. An elections official said it applies only to future data centers. The developer had already sued the city in federal court over an earlier moratorium and zoning repeal

Recalls

Those removed in recalls over data center plans include three Piqua officials (among them the mayor), the mayors of Urbana and of Yukon, Oklahoma, and a council member in San Angelo, Texas (all unofficial)
Ballotpedia had counted 42 data center recall efforts targeting 79 officials through September 2

3. States: Governors and Power Regulators

Governors' Promises and the Current Situation

State rules have not changed simply because of the election results. The promises of incoming governors below are things they say they will do after taking office.

Texas (promise, with a pause already in effect): Gina Hinojosa (Democrat) defeated incumbent Greg Abbott (Republican). She says she will pause data center approvals until the Legislature passes protections. She takes office on January 19
Texas today: On August 3, Governor Abbott halted approvals of new grid connections until an audit is complete, and on September 21 he directed the state environmental agency to stop issuing permits. In Texas, then, a pause began under a Republican governor before the election. Advocates say some permits were approved despite the pause, and Hinojosa has called it a pause in name only. We could not confirm the legal basis for these orders
Georgia (promise): Keisha Lance Bottoms (Democrat) says she will sign an executive order pausing new construction and will review tax incentives
Ohio (promise): Amy Acton (Democrat) proposes a conditional moratorium, not a full ban. Conditions include paying full costs, using union labor and building on old industrial sites rather than farmland. Republicans hold the legislature, and she has not said whether she would act by executive order
Pennsylvania (in effect): Governor Josh Shapiro (Democrat), who was reelected, issued an executive order on August 18 ending fast-tracked permits and requiring developers to bring their own power and pay for grid upgrades. It is not a moratorium
Arizona: Governor Katie Hobbs (Democrat), who was reelected, and her opponent Andy Biggs (Republican) both rejected a temporary ban proposed by the state attorney general
New York (in effect): The hold on state permits for data centers of 50 MW or more under Executive Order 62 of July continues. It does not cover local approvals or most applications already complete by July 14

According to Data Center Watch (via AP), of the 34 winners in governor's races AP has called, 32 support stronger regulation or restrictions and 12 support bans or moratoriums.

Power Regulators

State power regulators decide who pays the costs of data centers.

Georgia: Democratic candidates won two Public Service Commission seats with 56.4% and 55.3% of the vote and will hold three of the five seats (unofficial). The winners take their oaths on January 1
Limits in Georgia: The roughly 9,900 MW of new generation approved in December 2025 is not undone by this result. Base rates are frozen through 2028, and counties decide siting. Commissioners say that once the new majority takes office, they plan a proceeding to review how data center infrastructure costs are allocated
Arizona: Democratic candidates lead for two Corporation Commission seats and the Republican candidates have conceded (the count continues). Republicans keep three of the five seats
Not uniform nationwide: Reuters says nine states had utility commission seats on the ballot this year. Ballotpedia's results show Republican candidates winning in Louisiana, Alabama, Oklahoma, North Dakota and South Dakota, a Democrat winning a Nebraska seat, and Montana not yet called (unofficial)

4. Federal: What Changes and What Does Not

The legislative hurdle: Nationwide limits would need legislation. Ending debate in the Senate takes 60 votes, and President Trump has said in general terms that he will use his veto; we found no statement aimed specifically at data center bills
Current policy: Executive Order 14318 (July 2025) speeds federal permitting for data centers. Executive Order 14365 (December 2025) called for a proposal to preempt state AI laws, but that proposal generally excludes state laws on data center infrastructure
The rate pledge: The Ratepayer Protection Pledge of March 2026 is a voluntary commitment by Amazon, Google, Meta, Microsoft, OpenAI, Oracle and xAI to cover the costs of new generation and grid upgrades. It is not a law
Cost allocation bill: H.R. 9340, which sets standards for large customers, passed the House 417-3, but on September 30 the Senate fell short of ending debate, 57-43. Critics objected that states need only consider the standard
Permitting bill: The bipartisan S. 5653, the Bipartisan American Affordability and Jobs Act, includes a requirement that new data centers of 20 MW or more pay the full incremental cost of the power and grid infrastructure built to serve them. The Senate is scheduled to hold a procedural vote on November 9 (US time) on whether to begin debate, using H.R. 2347 as the vehicle for this permitting text. It needs 60 votes and is not final passage, and the schedule could change
Moratorium bill: A nationwide moratorium bill (S. 4214, H.R. 9442) from Senator Sanders and others has reportedly not had a committee vote
The incoming majority: Senator Sanders and others have called for a moratorium since the election. As far as we could find, however, post-election remarks by Schumer and Jeffries have centered on the cost of living and similar issues, and we found none specifically on data centers. Before the election, both said data centers should not raise costs for others, and Jeffries did not endorse a national moratorium
The grid: In June, the Federal Energy Regulatory Commission (FERC) ordered regional grid operators to review their rules for connecting large customers. FERC says responses are now due November 16 for five operators and November 20 for SPP. Texas's ERCOT operates within the state and is not covered

5. Public Opinion: Strong Opposition, but Not the Main Driver of Votes

The figures below are from the AP Voter Poll. Numbers reported by AP, NBC, CNN and others come from this one survey, not from separate polls.

A new local data center: 76% were opposed and 24% in favor. AP says opposition was in the majority in both Republican-leaning and Democratic-leaning states
Weight in the vote: For their vote for Congress, 23% called AI and data centers crucial, 33% a major factor, 31% a minor factor and 13% not a factor
Compared with other issues: The share calling each issue crucial was 55% for government corruption, 49% for the cost of living, 36% for immigration enforcement and 34% for the war with Iran, all above AI and data centers
How to read this: AP says data centers were not among the top issues for most voters. The Hill and some advocacy groups say the issue helped Democrats in some races, such as the Ohio Senate contest, while others dispute that. BBC Verify says the votes or seats it delivered cannot be measured. As far as we could find, no analysis shows that data centers decided any candidate's race

Even so, ad tracker AdImpact says more than $380 million was spent on TV ads mentioning data centers.

6. Industry and Market Reaction

Companies and Trade Groups

Data Center Coalition: The trade group said it wants to work with policymakers and communities to earn trust. It also said moratoriums have real-world consequences, such as lost local tax revenue
OpenAI: On November 5, OpenAI announced that at future campuses it owns and operates, it will pay the full cost of power and infrastructure and publish site-level electricity and water use, among other commitments. According to Bloomberg, OpenAI said this announcement was planned before the returns came in
Meta: President Dina Powell McCormick reportedly said at a November 4 event that building new data centers in the US will be harder and that major companies are weighing building abroad. This is not an announcement of any project moving

Markets

November 4: According to Reuters, data center operators and power-related shares fell during trading, while Amazon and Microsoft rose
November 5: The S&P 500 fell 4.36% and the Nasdaq Composite 5.52%. Reports linked the fall to fears of a slower data center buildout after the election, and also cited Qualcomm's outlook, doubts about returns on AI spending and borrowing costs, so the election cannot be called the only cause

This article is for information only and does not recommend investing in any shares or other securities.

Views on the Effect on Construction Plans

The following are estimates and opinions, not established facts.

Scale of planned capacity: Goldman Sachs says that from January, states led by Democrats who support expanding or extending moratoriums will account for 45% of planned US capacity. CNN notes this does not mean that capacity is on hold. Wells Fargo estimates Texas's share at 27%
Cancellations so far: Heatmap Pro says at least $260 billion of projects were canceled in 2026 after local opposition (as of October)
Timing: Nomura says much of the 2027 capacity is already under construction and expects the larger effect from 2028
A divided map: Morgan Stanley says state rules could split the US into areas open and closed to new data centers
Views on demand: Heather West of Eurasia Group expects permitted projects and those under construction to largely proceed. Dan Ives of Yorkville Ives says at least 10% of plans may drop away

Capital spending guidance for 2026 given in October was about $220 billion for Amazon, $195–205 billion for Alphabet, $135–145 billion for Meta and about $170 billion for Microsoft (calendar year). All of these predate the election.

7. Links to Japan

US-Japan investment framework: The first tranche of the $550 billion framework includes a plan at the former Portsmouth site in Ohio. According to AP, the Department of Energy expects the site to include a 10 GW data center and up to 10 GW of generation. SoftBank Group affiliate SB Energy is partnering with AEP Ohio on the generation and transmission, and $33.3 billion of Japanese funding is tied to the gas generation
Second tranche: It includes gas generation in Pennsylvania and Texas and small modular reactors in Tennessee and Alabama, with some power reportedly going to data centers
Effect so far: It is unclear whether moves by governors and legislatures in these states will affect these plans. The Portsmouth site is on federal land, and Pike County had no measure in this vote. We found no report of a change to any Japanese company's plans
Moves to Asia: We found no concrete information showing projects moving to Japan or Asia. Thailand reportedly suspended construction of 49 data centers in September, so Asia is not free of opposition or regulation

8. Key Dates Ahead

November 9 (US time): Senate procedural vote to begin debate on the permitting bill, via H.R. 2347 (60 votes needed; scheduled, may change)
November 16 and 20: Deadlines for grid operators' responses to the FERC orders (SPP on the 20th)
November 19–24: Ohio counties certify results (Champaign County, for Urbana, on the 19th; Miami County, for Piqua, by the 24th)
December: Texas audit report (schedule as of August)
January 2027: New Georgia commissioners take office (1st), the new Congress begins, the Georgia and Texas legislatures convene, and Hinojosa takes office (19th)

9. What It Means for Data Centers and Compute

The main powers over siting and retail electricity rates lie with states and localities, while the federal government regulates wholesale markets and transmission. Most concrete changes from this election so far are at the state and local level
So far, the only newly passed rules are in localities that approved binding measures, and those results are not yet certified. Most state-level moves are still promises, and the details will be set from January onward
The focus is shifting beyond whether to build, to who pays for electricity and how water use and disclosure are handled

We believe that if more US projects are delayed or change location within the US, equipment delivery sites and installation timing there would also change. This is a general view of the industry, not a view on any project named here. We see no concrete change affecting Japan so far, and we will continue to watch developments.

10. About Two Sheep Co., Ltd.

Two Sheep Co., Ltd., headquartered in the Telecom Center Building in Aomi, Koto-ku, Tokyo, provides on-site work at data centers and the shipping and installation of IT equipment.

24/7/365 Remote Hands: at data centers in Tokyo and Osaka (Equinix TY and OS sites, AT TOKYO CC1 and CC2, NTT and others), we handle server rack-mounting, cabling, part replacement (RMA), status checks and more
International shipping and import/export customs for IT equipment: we arrange transport and customs clearance from overseas all the way into the data center
Migrations, connectivity and optical modules: we handle data center migrations, arrange IP transit and private lines, and sell optical modules (ModuleSheep)
Support in Japanese, English and Chinese: we coordinate between overseas customers and Japanese data centers

Main Sources

About This Article

This article was compiled independently by Two Sheep from announcements by companies and public bodies, media reports and other public information available as of November 6, 2026. All election results are unofficial and may change. Promises have not been carried out, and estimates and opinions are not established facts.
This article does not support or criticize any party, candidate or policy.
This article is for information only and does not recommend any company, security or investment.
Companies are named only to illustrate industry trends; their mention does not indicate any business relationship with Two Sheep. Names of companies, products and services are trademarks or registered trademarks of their respective owners.
Contact: Japan@2sheep.jp, or use the contact form on this website.