Following the U.S. midterm elections, where Democratic candidates promising a moratorium on data center construction won several gubernatorial races, concerns are growing that investments in AI infrastructure may be stifled.
However, companies like OpenAI and CoreWeave, along with the domestic AI data center (AIDC) industry, are expressing confidence that their projects will proceed without significant issues. They argue that the global demand for AI is real and cannot be met without expanding AIDC.
According to the IT industry on November 8, of the 36 governors confirmed as elected or leading in the midterms, 34 support at least one form of data center regulation, with 12 states calling for construction delays.
In Texas, where data center construction has been most active, Democratic candidate Gina Hinojosa has been elected governor for the first time since 1990. Texas accounts for about 30% of the new data center capacity expected to come online in the U.S. by 2028, and Hinojosa campaigned on a promise to impose a moratorium on data center construction statewide.
In Georgia, Keisha Lance Bottoms has been elected governor, while Amy Acton has won in Ohio. Morgan Stanley has analyzed that the risk of delays for a 10GW data center project involving NVIDIA in Ohio has increased.
The market reacted swiftly. On November 4, shares of data center operators, including CoreWeave, fell sharply, with CoreWeave's corporate bond prices also declining. Goldman Sachs estimates that about 45% of the planned data center capacity expansions in the U.S. could be temporarily halted due to the election results.
The domestic stock market also felt the impact, with the KOSPI closing down 5.28% at 5,383.80 on November 5, and shares of SK Hynix and Samsung Electronics dropping by 9.46% and 7.57%, respectively.
OpenAI has stated it will continue its investments. Sarah Pryor, OpenAI's Chief Financial Officer, said in a CNBC interview on November 6 that "AI demand is real" and that the company will keep investing to meet customer needs despite the election results. Pryor explained that they will continue to secure funding based on established relationships with major cloud providers.
Pryor also addressed community concerns, promising, "We will not raise electricity rates." OpenAI previously unveiled a blueprint for community agreements and policies to be applied to its future data center campus on November 5.
CoreWeave has opted to collaborate with the newly elected Democratic governor. On November 7, CoreWeave sent a letter to Hinojosa, proposing cooperation on ongoing or planned data center projects in Texas.
CoreWeave CEO Michael Intrator stated in the letter, "We have made it clear that the growth of data centers should benefit Texas," adding that they strongly support this principle. He expressed a desire to work with the transition team to ensure responsible completion of already approved projects and to establish clear and sustainable standards for future developments.
The domestic AIDC industry has also distanced itself from the U.S. concerns. Industry representatives believe that there will be no issues in proceeding with their ongoing AIDC projects, regardless of the election results.
One AIDC project leader stated, "The atmosphere in the U.S. is not one of complete opposition to AIDC, but rather a sentiment to regulate indiscriminate AIDC construction, so the likelihood of projects being halted is low. I don't think it will have a significant impact on domestic companies' AIDC projects."
* This article has been translated by AI.
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