Atlas Research Note

After the Midterms, Expect Slower Data Center Permits and Higher Compliance Costs, Not a Shutdown

Ben Bajarin · November 4, 2026

Creative Strategies Atlas note | November 4, 2026 | Data center and power policy after the 2026 midterm elections Democrats who ran against data center growth won the governor's races in Texas and Ohio, and a number of towns passed local restrictions. The first market reaction treats this as a threat to the AI buildout. We think the more likely outcome is a more measured permitting process that costs more and takes longer, and that the added cost favors the largest hyperscalers and the best-funded neoclouds over smaller developers.

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Notes

After the Midterms, Expect Slower Data Center Permits and Higher Compliance Costs, Not a Shutdown

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