White House expects U.S. data center build-out to continue after anti-development ballot wins

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White House on data center outlook

Highlights

Despite 46 of 50 data center ballot initiatives passing restrictions for 2026, the White House expects U.S. data center construction to continue in receptive states.
Thursday's tech-led market selloff was partly driven by uncertainty over new political majorities affecting future data center policy and potential growth constraints.
A CNBC poll shows 56% of midterm voters rank data centers as a crucial or major issue, with 62% of crucial-issue voters supporting Democratic candidates.

Administration stance on data center expansion

As reported by CNBC, Hassett says the pipeline for data centers scheduled over the next couple of years is not being derailed by the wave of ballot initiatives that passed in the midterm elections. He says the U.S. is large enough for growth to continue in states with governors that remain open to the facilities, even as many localities choose tighter limits.

Hassett acknowledges that dozens of state ballot measures seek to constrain data center construction, which the administration views as a crucial part of President Donald Trump's effort to keep the U.S. ahead in the global AI race. He also suggests opposition could ease over time if states see the economic benefits from the projects, or if policymakers later change how they regulate the sector.

Ballotpedia's tally shows that voters backed restrictions in at least 46 of at least 50 data center-related initiatives on 2026 ballots nationwide. Even so, Hassett says the broader economy remains strong and argues that, even if policy changes slow the pace of expansion, the industry can still support what he calls a blockbuster economy.

Market reaction and political pressure

Hassett links Thursday's tech-led market selloff in part to uncertainty over how the new political balance could affect future data center policy. He says investors are uneasy that the incoming majority may interfere with an industry that has been expanding rapidly.

The issue is also becoming more visible with voters. A CNBC voter poll finds that 56% of midterm voters view data centers as either a crucial or major issue, and among those calling it crucial, 62% support the generic Democratic candidate.

Trump is continuing to back the industry despite the election setback and has sought to soften its political image by referring to the technology as "super intelligence," or SI. In a Truth Social post on Friday, he says he remains fully in favor of SI and will work with states that want to host the facilities and benefit economically from them.

In our earlier coverage of mounting headwinds for U.S. AI data center development, we highlighted that rising financing costs, construction delays, and power limitations were putting the boom under strain. The piece noted that a significant share of planned projects may be unrealistic, while investor confidence has been tested by sell-offs and cost overruns, alongside growing local opposition and tighter demands around securing power supply.

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