The rapid expansion of artificial intelligence infrastructure in the United States could face significant regulatory challenges following the November 2026 gubernatorial elections. Newly elected governors in several states have promised to halt or pause data centre construction, putting a substantial portion of planned computing capacity at risk.
According to industry data, approximately 40% of the country’s planned data centre capacity is located in states where incoming governors have pledged to restrict or temporarily stop new developments. The election results could therefore reshape investment plans for technology companies racing to build infrastructure for artificial intelligence services.
Texas, Ohio and Georgia Among States Facing Possible Restrictions
Newly elected governors in Ohio, Georgia, Michigan, New Mexico and Texas campaigned on promises to stop or pause data centre construction statewide. Candidates in New York and Oregon have also pledged to extend existing pauses.
The proposed restrictions come amid growing public opposition to large data centres. Communities have raised concerns about rising electricity bills, water consumption, pressure on local infrastructure and the environmental impact of these facilities.
Texas is particularly significant because it has become a major destination for large-scale AI infrastructure investments. The state’s incoming governor, Gina Hinojosa, has called for a moratorium on data centre development until lawmakers establish new guidelines.
In Florida, incoming governor Byron Donalds has proposed requiring data centres to generate or procure their own electricity rather than relying entirely on the public grid.
AI Infrastructure Projects Face Delays and Higher Costs
The election results could affect more than construction approvals. Technology companies are expected to reconsider where they build new facilities, depending on local regulations, electricity availability and permitting requirements.
According to Bloomberg Intelligence estimates, the election-related uncertainty could reduce the $1.4 trillion that technology companies were expected to spend on AI infrastructure by approximately 5-7% in 2027.
The slowdown could also prevent as much as 10 gigawatts of planned data centre capacity from becoming operational next year as scheduled.
Data centre developers were already facing local opposition before the elections. At least 45 projects had been affected by community resistance during the second quarter of 2026, according to industry tracking data.
Technology Companies May Shift Investments to Other States
The changing regulatory environment could encourage hyperscalers, including major cloud computing companies, to move planned investments to states with fewer restrictions.
Louisiana and Oklahoma could benefit from projects that encounter regulatory hurdles in Texas. However, relocating large data centre developments is not straightforward because companies must consider land availability, power infrastructure, transmission capacity and construction timelines.
Industry representatives have warned that communities imposing restrictions could lose potential investments, employment opportunities and tax revenue to other locations.
Some policymakers are also considering a different approach rather than outright bans. This could involve requiring developers to demonstrate economic benefits, fund electricity infrastructure upgrades and provide assurances that local residents will not bear the additional power costs.
AI Expansion Faces a New Political Challenge
The debate over data centres has increasingly crossed traditional political boundaries. Candidates from both major US parties have raised concerns about electricity prices, water usage and the local impact of large computing facilities.
Technology companies are also beginning to respond. OpenAI, for instance, has said it will avoid nondisclosure agreements during data centre negotiations and ensure that residents do not pay for electricity used by its projects.
The coming months will determine how campaign promises translate into state-level regulations. While the AI infrastructure boom is unlikely to stop altogether, tighter approval processes, higher compliance costs and shifting investment locations could change the pace and geography of data centre expansion across the United States.
