A backlash against AI-related data center construction helped drive a wave of local ballot measures and new officeholders pledging tighter oversight, spooking investors and sending tech shares into a sharp swing. Voters approved at least 44 of 47 measures to restrict data centers, while governor-elects in Texas and Georgia signaled pauses or reviews of new projects. Markets whipsawed, with the Nasdaq falling into correction before rebounding, as analysts warned the AI trade may be entering late innings and regulatory risk could slow infrastructure buildouts central to the boom. OpenAI moved to ease tensions, promising greater transparency with communities and ending nondisclosure agreements with public officials. Investors are weighing whether rising spending, leverage across the AI ecosystem, and slower project pipelines will dent profits, potentially spreading volatility beyond big tech.
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