Data Center Growth to Continue Despite Midterm Limits, Says Hassett
Published on · Source: cnbc.com
AI Summary
Summarized by AI from the source belowKevin Hassett, National Economic Council Director, stated on Friday that data center growth in the U.S. will continue as planned despite voter initiatives to limit it. In the 2026 midterm elections, at least 46 out of 50 ballot measures sought to restrict data center development, according to Ballotpedia. However, Hassett noted these restrictions will not impact data centers scheduled for construction in the next few years.
Hassett mentioned that states with more welcoming governors will likely see data center expansion, while even states opposing such growth may eventually change policies due to clear economic benefits. He linked the recent tech-driven market decline to uncertainty regarding political shifts and their effects on data centers. Despite this, Hassett expressed optimism due to overall economic strength and the rapid growth of data centers.
The CNBC Voter Poll showed 56% of midterm voters considered data centers a crucial or major issue, with 62% of those prioritizing it favoring Democratic candidates. Former President Donald Trump continues to support data centers and artificial intelligence, promoting the concept of "super intelligence" and encouraging states to embrace the economic opportunities data centers provide.
This matters for investors as political attempts to curb data center expansion are unlikely to halt continued growth, preserving revenue potential for data center operators and related technology sectors despite near-term regulatory challenges.
Informational only, not financial advice. Content is AI-generated and may contain errors. How this works.
Our take
Opinion from the Newsstocks AI desk, not investment adviceWe think Hassett's comments highlight confidence that near-term data center projects will proceed despite political resistance. However, continued growth depends on states' regulatory decisions and economic incentives. This stability contrasts with current market anxiety over political uncertainty.
Key numbers
- Ballot initiatives restricting data centers
- at least 46 of the at least 50
What could help
- Data centers scheduled over the next few years are not affected by recent ballot initiatives.
- Economic benefits of data centers may lead states to relax restrictions in the future.
What could hurt
- Many states approved ballot measures limiting data center development in 2026.
The background
Data center growth depends on political and regulatory support because these facilities require significant infrastructure and local approvals. Changes in voter sentiment or state policies can affect the industry's expansion plans.
Questions readers ask
What did Kevin Hassett say about data center growth after the 2026 midterm elections?
Kevin Hassett said data center growth will continue as projected despite widespread voter initiatives to limit development.
How many ballot initiatives sought to restrict data centers in 2026?
At least 46 of 50 ballot initiatives aimed to restrict data center development, according to Ballotpedia.
What percentage of voters considered data centers a crucial or major issue in the midterms?
56% of midterm voters identified data centers as a crucial or major issue.
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