What’s Next For Tech, AI, Data Centers after the Midterms?

Key Democratic victories in the midterm election could create a new political environment for the technology industry, raising the prospect of increased scrutiny of AI companies, greater congressional oversight and potential delays to major data center projects. 

One of the most immediate changes will come from Capitol Hill as Democrats take charge of congressional committees. In most cases, the current Democratic ranking member on the committee will move into the chairman role. Reps. Frank Pallone, Zoe Lofgren and Jamie Raskin are positioned to lead influential committees overseeing energy and commerce, science and technology and the judiciary. Their chairmanships would give them greater control over hearings, investigations, subpoenas and legislative priorities. 

Shortly after winning reelection, Lofgren confirmed she would be seeking the chair of the House Science Committee to continue “oversight and investigations work.” Lofgren also emphasized the need for AI safeguards while preserving the technology’s potential benefits. 

“The future is unfolding before us with groundbreaking technologies like AI, quantum, and fusion energy,” she said in a statement. “We need to build responsible regulations for AI while also fostering innovation. We must invest holistically in quantum to meet emerging challenges for our competitiveness in this field.” 

The House Oversight Committee ranking member Rep. Robert Garcia, has also signaled he would take over as chair and push an aggressive investigative agenda.

At the state level, Democrats won gubernatorial races in major data center markets including Texas, Georgia and Ohio, where concerns about electricity costs, water consumption and community impact were major campaign trail talking points.  

In Texas, Gov.-elect Gina Hinojosa campaigned on pausing new data center construction until lawmakers establish protections for communities.  

“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,” she said on her website. 

Georgia Gov.-elect Keisha Lance Bottoms didn’t rule out new data center projects, but called for a temporary pause on new construction to “figure out the responsible path forward as a state.” 

“That pause could be one month. It could be six months or longer,” she said in an interview. “But what I’ve not seen come forward from the state are concrete information around what’s been the strain on our electric grid. How much are consumers actually carrying the cost for these data centers? What’s the long-term health impact? The long-term impact on our water supplies. We want to just make sure that we are moving forward responsibly.” 

Regarding data centers in Ohio, Gov.-elect Amy Acton said, “Ohio is open for business, but we are not up for sale,” and campaigned on stricter guardrails. 

“I support a conditional moratorium on data centers to ensure they cover 100% of their utility costs, exclusively build with union labor, operate with full transparency, support the needs of local communities, live by Ohio’s environmental standards and bring jobs to former industrial areas that have been left behind,” she said adding that new data centers coming to the state must be built on brownfields and previously developed industrial sites, not farms.