Hassett: Data Center Buildout to Proceed Despite Midterm Election Setbacks

Deep News11-07

National Economic Council Director Kevin Hassett said he expects data center construction to continue as planned, even after Democrats scored major midterm election victories.

Dozens of ballot initiatives across the country were put before voters, and most results favored restricting data center development.

Speaking on the program "Blood Street," Hassett said: "The United States is a vast country, and data center projects scheduled to break ground in the coming years will not be affected by these local ballot initiatives for now."

White House National Economic Council Director Kevin Hassett said on Friday that despite a "blue wave" in the midterm elections and widespread voter support for restricting this critical technology infrastructure, he still expects data center construction to proceed according to previous expectations.

Hassett discussed the dozens of ballot initiatives in various states aimed at curbing data center construction during the program. Data centers are a key lever for the Trump administration in its bid to secure an edge in the global AI race.

According to Ballotpedia, multiple related initiatives went to a vote in 2026, with most voters casting ballots in favor of restricting the development of such facilities.

"We respect the choices made by local governments," Hassett said. "But the United States is a vast country, and data center projects currently scheduled to come online over the next few years have not been affected by these ballot initiatives."

"As for future projects, the United States still has ample space to continue expanding data centers as expected before the election," he said.

Hassett believes data centers will continue to expand in states whose governors are friendly to the industry, while hinting that even states currently resistant could eventually change their stance.

"That is the direction things will move in," he said. "Either that happens, or the economic benefits brought by data centers will become obvious enough to prompt the public to change its view on the relevant regulatory rules."

Hassett attributed Thursday's stock market sell-off to "market uncertainty about how political changes will affect the future data center industry."

"The new majority Congress may step in and stir things up, and I think the market is anxious about that," he said.

"But looking across the United States, economic fundamentals remain very strong in all sectors. Moreover, even if the high-growth data center industry slows somewhat, the U.S. economy will remain strong."

"So we remain highly optimistic about the prospects going forward," he said.

Exit polls showed that 56% of midterm voters considered data centers a key or major issue, and among voters who viewed the issue as a core concern, 62% voted for Democratic candidates.

Trump has strongly supported Artificial Intelligence and the data center industry, even attempting to rebrand the technology as "Super Intelligence (SI)" to reverse negative public perceptions.

In a post on Truth Social on Friday, Trump said his support for the emerging industry remains unwavering despite midterm election setbacks.

"As president, I am 100% behind 'Super Intelligence (SI).' I will work with the many states in America that want to use this industry to achieve economic prosperity," Trump wrote. "This is a gold mine, and only foolish leadership would say no to wealth that is within easy reach!"

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