Sanders, Democrats push 'national data center moratorium' after midterm wins

Leading Democrats are calling for new limits on data center construction after the party's midterm election gains on Tuesday, with Sen. Bernie Sanders, I-Vt., demanding a "national data center moratorium now."

In a post on X, Sanders — who caucuses with the Democrats — pointed to local referendums held across the U.S. on Tuesday in which voters approved restrictions on data centers, and said the message to political leaders was clear. "Americans don't want Big Tech oligarchs wrecking the environment, gutting jobs and threatening humanity's future," he wrote.

Rep. Yassamin Ansari, D-Ariz., wrote in a separate post that pausing AI development should be a top priority for the large Democratic majority in the House on Day 1. Rep. Greg Casar, D-Texas, chair of the Congressional Progressive Caucus, amplified the post and said, "Yes!"

Voters and markets

The CNBC Voter Poll found that 56% of voters said AI and data centers were a crucial or major factor in their decision at the ballot box. Of those voters, 65% said they cast a ballot for a Democratic candidate for Congress.

Stocks linked to the AI build-out declined after the election as investors weighed whether Democratic wins could have a real impact on data center construction. Chip stocks led the fall: the iShares Semiconductor ETF (SOXX) tumbled nearly 9%, Nvidia declined 8% and Advanced Micro Devices sank more than 14%.

Winners target Big Tech

Democrats who flipped critical races also singled out large technology companies and data centers.

South Carolina Democrat Annie Andrews, who flipped a Senate seat in the state, launched a campaign website that branded her opponent, Sen. Darline Graham, "data center Darline." In her victory speech she said voters chose a South Carolina "where decisions about communities are made by the people who live in our communities, not the billionaires or data center companies in Washington D.C."

Ohio Democrat Sherrod Brown, heading back to the Senate after defeating incumbent Republican Sen. Jon Husted, said in his victory speech, "I do not work for data centers."

Pennsylvania Gov. Josh Shapiro, who signed an executive order in August to slow data center development, said big tech companies should not determine residents' futures. "Instead, the folks in our local communities get the final say," he said.

Texas in focus

Texas matters most to the build-out: the state is home to 27% of planned data center capacity, according to Wells Fargo. Gina Hinojosa, the Democrat who ousted incumbent Republican Gov. Greg Abbott, did not address data centers directly in her victory speech, though they played a key role in her campaign. In a video posted to X in late October, she said: "When I am governor, I will issue a moratorium, a ban, on all data center approvals until laws can be passed by the legislature to protect Texans." She described it as "one fight" over whether Texas is "by and for the people" or "the billionaire's world," adding: "Data centers are part of that fight."

Source: CNBC.