Hassett: Data center growth continues despite election limits

National Economic Council Director Kevin Hassett told CNBC on Friday that he expects data center growth to continue as projected, despite the blue-wave midterm election that saw voters overwhelmingly favor limiting tech infrastructure buildout. Hassett, appearing on CNBC's "Squawk on the Street," acknowledged the dozens of ballot measures across various states seeking to constrain data centers, which are a crucial part of President Donald Trump's push to win the global artificial intelligence race.

In at least 46 of the at least 50 such initiatives on ballots in 2026, majorities voted to restrict development of the facilities, according to Ballotpedia's tally. Hassett said he respects localities deciding their own regulatory paths but noted the United States remains large enough for continued expansion. "We respect the localities that decide that's what they want to do," Hassett said. "But America is a big place, and right now, the data centers scheduled over the next couple of years aren't affected by these ballot initiatives."

He also suggested that even hostile states will eventually come around as the tangible benefits of data centers become apparent. "That's exactly what's going to happen," he said. "That, or what'll happen will be that the benefits of the data centers will be so obvious that people decide to change their minds about the way they regulate them."

Hassett also blamed Thursday's tech-driven market plunge on uncertainty about the political shift. "We've now got a ... new majority that maybe is going to go in there and muddle around in there, and I think that markets are anxious about that," he said. "But I think that the economic strength that we see everywhere else is so strong, and of course, in the end, you could take something that's growing as fast as the data centers and make it grow a little bit slower, and you still have a blockbuster economy."

Meanwhile, Trump has strongly embraced AI and data centers, even trying to reverse their seeming unpopularity by rebranding the tech as "super intelligence," or SI. In a Truth Social post Friday, he made clear that despite the midterm losses, his support for the nascent industry has not faltered. "As President, I am 100% in favor of Super Intelligence (SI), and will work with the many States in the U.S. that want to become RICH by having them," Trump wrote. "They are GOLD, and only foolish leadership will say 'NO' to the riches they bring!"

The CNBC Voter Poll found 56% of midterm voters identified data centers as either a crucial or major issue—and of those who considered it crucial, 62% favored the generic Democratic candidate.

Source: CNBC.