KevinHassett News & Analysis

Data Center Growth to Continue Despite Midterm Limits, Says Hassett

Kevin 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.