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Power, Pushback, Politics and Policy: Data Centers After the 2026 Midterms

On November 3, voters across at least ten states decided 47 ballot measures related to data center development. In 46 of those 47, majorities voted to restrict, ban, or impose moratoriums on new construction.

Ohio had the most activity: 21 measures across 18 municipalities, restrictions approved in every one. The closest margin was Sprigg Township, Adams County, at 52.6 percent. Communities in Indiana, Virginia, Georgia, and Wisconsin approved similar measures.

The results matched polling trends throughout the year. A University of Pennsylvania Annenberg survey in August found 61 percent of Americans opposed new data center construction in their communities, crossing party lines: 69 percent of Democrats, 54 percent of Republicans, 53 percent of independents. A Pew Research Center survey in September found 54 percent believed data centers had a mostly negative environmental impact and 50 percent associated them with higher household energy costs.

What Drove the Opposition

Electricity costs were the most common concern. Large AI data centers require hundreds of megawatts of continuous power, and residents questioned whether utility upgrades serving those facilities would increase their bills. Water consumption appeared on ballots in regions already under supply pressure. Voters sought enforceable commitments on water use.

Employment and tax revenue did not overcome opposition. Communities distinguished between temporary construction jobs and long-term operational employment and questioned whether proposed tax incentives justified the infrastructure demands.

An October Heatmap investigation estimated that at least $260 billion in proposed data center investments were canceled during the year following sustained local opposition. The election formalized that opposition through the ballot box.

The Political Reach

Data center opposition crossed party lines at the ballot box. Restrictions passed in both traditionally Democratic and Republican communities.

The issue also influenced larger races. Reuters reported that data center opposition contributed to Democratic gains in gubernatorial contests in Texas and Georgia, two states with large development pipelines. Time identified voter opposition to AI data centers as one of the factors shaping competitive races in the 2026 midterms. Candidates who emphasized utility cost protection and community control over land use connected with voters across conventional political categories.

What Changes for Developers

The global digital infrastructure development pipeline stands at 373 gigawatts, according to figures presented by Infrastructure Masons (iMasons) founder and chairman Dean Nelson. Roughly 71 GW is operating, 22 GW is under construction, and 280 GW remains in development. Delivering that capacity now requires treating community acceptance as a constraint comparable to power procurement.

Developers have historically evaluated sites on power availability, land cost, and fiber connectivity. Community receptivity is now a measurable factor. In jurisdictions where voters can place restrictions on the ballot, proposed projects face public approval processes that existing permitting frameworks did not anticipate.

State legislatures are expected to respond with additional regulations on electricity costs, water disclosure, and environmental review. Some development may shift to other jurisdictions, but the underlying concerns about energy, water, and local impact are present wherever large-scale data center construction is proposed.

In his November 2025 iMasons article, Growth, Power, and Promise: The Facts About Data Centers, Dean Nelson described how responsible development can finance grid improvements and support reliable electricity delivery. The election results indicate that making that case will require project-level evidence: verifiable consumption data, binding agreements, and local participation in decisions.

The iMasons Social Accord examines how digital infrastructure can create economic, social, and ecological value where it operates. Voluntary frameworks will need to produce measurable, community-specific commitments to be credible in the current environment.

At AI INFRA SUMMIT 6 on December 9 in San Francisco, Dean Nelson will cover these issues in his mainstage talk, Power, Pushback, Politics and Policy.

Bay Area Startups Collectively Secured $13B+ in November MTD

The first week in November totaled more than $13B in fundings, thanks to OpenAI's $11B round. AI infra company fal announced a $1.3B Series F, plus an earlier $350M Series E.

Public, Private markets: The stock market lost more than $3T in market value on Thursday as the S&P plunged more than 4%. Investor anxiety over the AI boom was building before the elections, as more circular financing deals were cut, more corporate bonds issued and expanded debt financing closed. That combined with the election results took its toll on the market. None of that has been reflected yet in private market valuations, but the first indication of reduced investor enthusiasm there may be OpenAI settling for a $1.25T valuation, down from $1.4T.

Startups: Looking for investors, partners, possible competitors? Best deal in the valley is the Pulse of the Valley weekday newsletter and alerts – get a daily summary of just the activity that is most important to you: prospects for investors, partners and customers. Founders get the alerts and newsletter for just $7/month ($50 value). Check it out and sign up here.

Follow LinkSV on LinkedIn to get early notice of new tech, stay on top of SV funding intelligence, and keep track of the trends, companies and investors impacting the startup ecosystem.

Early Stage:

• AndTruth closed a $70M Seed, building the universal verification machine: technology that reads code in any language and mathematically proves it safe, secure, and correct.

• Humble Robotics closed a $51M Series A, makes fully autonomous, electric haulers designed for the most efficient, cost-effective commercial freight transportation.

• Plato Technologies closed a $16M Series A, builds working simulations of real jobs and tasks for AI training and evaluation.

• e2e closed a $8M Seed, provides the software verification layer for the agentic coding era.

Growth Stage:

• OpenAI closed a $11B late stage financing, an AI research and deployment company dedicated to ensuring that general-purpose artificial intelligence benefits all of humanity.

• Zipline closed a $1.5B Series I, the world's largest and most experienced autonomous delivery service.

• Whop closed a $205M Series D, enables individuals and businesses to accept payments, launch ventures, and engage with others across the network.

• Casap closed a $56M Series B, our AI agents handle the high-stakes work financial institutions can’t afford to get wrong.

GPU Capacity Shouldn't Take Weeks to Source

Buying GPU capacity remains a fragmented process. With hundreds of neoclouds in the market, buyers often compare pricing, specifications, service agreements and contract terms one provider at a time. For operators, every hour of unused capacity represents revenue they cannot recover.

Compute Exchange is building a marketplace to make GPU procurement faster and more transparent, connecting verified buyers with providers offering available and future compute capacity.

Who they are & what they deliver

Compute Exchange is an institutional GPU marketplace led by CEO Carmen Li, who also heads Silicon Data. The platform connects buyers with verified neoclouds, bare-metal providers and infrastructure operators without owning GPUs or operating data centers.

Buyers submit their GPU requirements and compare provider quotes, pricing, availability and service terms before contracting directly with their chosen provider.

The marketplace covers three areas: reserved GPU capacity with terms ranging from 1 to 36 months, forward contracts for future compute delivery, and a secondary market for used and refurbished NVIDIA hardware.

Who they serve

Compute Exchange serves AI developers, enterprises and infrastructure buyers looking for reliable GPU capacity, alongside neoclouds and operators seeking qualified demand. Companies featured on its platform include Modular, Character.ai and DRW.

In September, Compute Exchange introduced an inventory manager that gives buyers a consolidated view of current, reserved and forward capacity across more than 100 providers. Buyers can compare pricing, specifications, locations and service agreements from one place.

Carmen Li also joined us at our October 8 NeoCloud Summit in San Francisco, moderating a discussion on what inference providers need from their GPU infrastructure partners.

Explore Compute Exchange to see how its marketplace connects GPU buyers and sellers through verified providers and transparent quote comparisons.

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