Just look at Jin Qilin analysts’ reports when trading stocks—authoritative, professional, timely, comprehensive—helping you uncover potential thematic opportunities!
(Source: Zhitong Finance)
Zhitong Finance APP learned that the physical backbone of artificial intelligence—data centers—is transforming from Silicon Valley’s grand blueprint into a “giant electricity bill” at American voters’ doorsteps. On Tuesday, the tactical strategy team at Barclays officially incorporated this risk into its market outlook, warning investors not to assume that “rapid AI application growth and a permissive political environment can coexist in the long term.” Evercore ISI and BCA Research had also previously warned that a populist backlash targeting AI could cause trouble for the stock market. Bank of America was even more direct, saying that if Democrats win both the Senate in the midterm elections and the governor’s seat in Texas, the U.S. stock market could fall by more than 10% next year.
“Data center construction is turning AI from an abstract tech story into a concrete cost-of-living issue,” Barclays strategists Jenny Yang and Alex Altmann wrote in a report. Even voters who have never used ChatGPT can’t escape the consequences of data centers—higher electricity bills, increasingly tight pressure on water resources, and industrial facilities rising within communities.
While Wall Street is still debating the valuation of AI chip stocks and capital expenditures, a political storm from the U.S. heartland is quietly changing the basic logic behind AI investing. From Pennsylvania to Texas, and from New York to Florida, the construction boom of AI data centers is running into unprecedented bipartisan resistance—and that resistance is becoming the most lethal political issue in the 2026 midterm elections.
This AI-driven “NIMBY movement” is becoming the “invisible bomb” tearing apart both parties in the 2026 midterm elections.
From “NIMBY effects” to “ballot poison”: the political nature of AI infrastructure has been fully transformed
Wall Street’s concerns aren’t unfounded. Polling data clearly reveals a sharp shift in voter sentiment. A Gallup survey released in May found that about 71% of Americans oppose building AI data centers in their own area. A July Fox News poll showed that 70% of voters oppose building data centers in their districts to support AI, while 78% support slowing down construction. Opposition cuts across party lines—69% among Democrats, 54% among Republicans, and 53% among independents. In just the first quarter of 2026, about 75 data center projects in the U.S. with a total investment size of roughly $130 billion faced varying degrees of community opposition.
The key reason voters oppose it is rising electricity bills. Research shows that building data centers causes local residents’ electricity bills to rise by an average of about 18%. Because AI data centers consume massive amounts of electricity, the highest U.S. wholesale electricity prices have surged by nearly 2.7 times. Against a backdrop of persistent inflation pressure, this is no different from pouring gasoline on the fire for ordinary households.
This anger is quickly organizing. In July alone, data center opponents held 142 protest events across 42 states. From the East Coast to the West Coast, the “heat” around data centers is shifting from the technology sector to voter forums.
In a report to clients, Barclays strategists Jenny Yang and Alex Altmann captured the essence in one line: “Data center construction is turning AI from an abstract tech story into a concrete cost-of-living issue.” “Even voters with limited exposure to AI will be affected by higher electricity bills, water stress, and the construction of industrial facilities in their communities.”
A July report noted that opposition to AI data centers has become “one of the few issues capable of mobilizing voters across the political spectrum,” as politicians from both parties scramble to adapt to this new reality.
A state-level regulatory “avalanche”: from a ban in New York to Pennsylvania’s “strictest” rules
Opposition at the political level has quickly translated into tangible regulatory tightening.
In mid-July, New York became the first state in the U.S. to hit the “brakes” on hyperscale data centers at the state level. Governor Hochul signed an executive order pausing state-level environmental approvals for large data centers of 50 megawatts or more. The order is widely seen as the first substantive U.S. restriction measure targeting AI infrastructure.
Florida passed legislation requiring that new electricity grid costs for large data centers cannot be passed on to ordinary residents and small businesses.
Republican Senate candidate in Michigan, Mike Rogers, has publicly called for a one-year pause in data center construction.
Ohio has paused tax incentives for data centers. Democratic lawmakers in the Senate have even proposed a bill to end the federal tax incentives that current data centers enjoy.
And the controversy over AI data centers is deeply embedded in the political landscape of the midterm elections. Texas and Pennsylvania have become two key battlegrounds in this struggle.
On August 18, Pennsylvania issued the “strictest” data center regulatory rules in the U.S. Governor Shapiro signed an executive order requiring data center developers to resolve power supply themselves, cover the related electricity costs, and gradually increase the share of clean energy usage. They must also “respect local communities, stay transparent with the community, and prioritize local hiring.” Developers must sign a “legally binding consent order,” and failure to comply will trigger strict penalties.
Texas Governor Abbott has ordered audits this month for all data center projects applying to connect to the power grid. Jefferies analysts characterize the move as a “chilling signal” aimed at power stocks. Abbott has also publicly argued that large data centers should cover related infrastructure costs themselves, increase power supply, and recycle water resources.
Texas is one of the states with the largest number of data centers in operation and in planning nationwide—and it has long been a traditional stronghold for Republicans. The team led by Michael Hartnett, Bank of America’s chief investment strategist, puts the Texas governor’s election at the center of its market outlook. The race between incumbent Republican governor Greg Abbott and Democratic challenger Gina Hinojosa is seen as a referendum: one side is the tech giants’ push to expand AI infrastructure, and the other is voters’ deep concerns about rising electricity bills and impacts on their communities.
Hartnett’s team warns that if this Texas Republican stronghold sees substantive policy tightening targeting data center construction, it will send a clear signal: anti–AI infrastructure sentiment has moved beyond party lines and become a cross-party political consensus. Abbott has ordered audits this month for all data center projects applying to connect to the power grid, and Jefferies analysts describe the move as a “chilling signal” aimed at power stocks.
“Political pricing” on Wall Street: Barclays, Bank of America, and Evercore all sound the alarm
Wall Street is incorporating this political risk into investment frameworks at an unprecedented speed.
Barclays Bank is the latest institution to join the warning ranks. Its strategy team said its tailored AI data center index—which includes more than 40 stocks such as Supermicro Computers (SMCI.US), Arista Networks (ANET.US), and Microsoft (MSFT.US)—has begun to reflect this risk. Barclays believes that regardless of midterm election outcomes, AI trading lacks new upside catalysts.
The team led by Hartnett places the Texas governor’s election at the core of its market forecasts. Hartnett warns that if Democrats simultaneously control the Senate and win the Texas governor’s seat, U.S. stocks could fall by more than 10% next year, reaching the definition of a technical pullback.
Evercore ISI and BCA Research had previously also warned that a populist backlash against AI could create trouble for the stock market. BCA’s core conclusion is even more far-reaching: “A populist backlash against AI may help drive bipartisan regulatory legislation by 2027, but especially could trigger large-scale tax increases after 2029.”
Trump’s “headwind situation”: When the president’s AI enthusiasm meets voters’ collective resistance
President Trump is a strong supporter of AI and data centers, but his stance is becoming a political liability for Republican candidates.
Last week, Trump said in a radio interview that communities rejecting data centers are “making a mistake.” He has repeatedly emphasized that data centers bring “huge job opportunities and tax revenue,” and framed the AI race as a national security priority in competition with China.
However, this stance is tearing the Republican Party apart from within. According to a July report by Bloomberg, Republican candidates are distancing themselves from Trump on the data center issue to improve their prospects ahead of the midterms. The Senate Republican campaign arm has sent internal memorandums to top AI companies, warning that negative views on data centers are choking off the party’s chances of holding key seats in Ohio.
Henrietta Treyz, of investment advisory firm Veda Partners, said, “Super-giant companies in the AI space face enormous risk,” and that state-level AI regulatory policies will provide a blueprint for legislation at the federal level.