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Democrats' midterm sweep puts US data center boom in doubt

Texas governor-elect Gina Hinojosa wants a pause on construction, and Nikkei Asia reports the result could weigh on Japanese projects by Honda and Nippon Steel.

Skardu Times desk
Democrats' midterm sweep puts US data center boom in doubt
Photo: Nikkei Asia

Democrats won a sweeping victory in Tuesday's US midterm elections, a result that France 24 reported leaves Republicans looking for a way forward and Donald Trump a lame-duck president two years before the next presidential vote.

Nikkei Asia reported that Democrats flipped five governorships. It said the gains could slow data center construction in the United States and create a headwind for Japanese investment projects there, naming Honda, Mitsubishi Heavy Industries and Nippon Steel as companies that could be affected by new policies. The outlet did not say which measures it expected.

Texas governor-elect Gina Hinojosa, a Democrat, has called for a temporary halt to data center construction, Nikkei Asia reported.

The Associated Press led on the same subject from the technology side, reporting that AI data centers took a beating in the midterms and that a reckoning may be ahead for the tech giants that build them.

The reaction was not limited to the United States. Audacy reported that protesters broke into a Microsoft data center site in Amsterdam, and described the incident as part of a backlash spreading across Europe. The Post Register published photographs of data center protests in the Netherlands.

France 24 reported that the Republican Party faces questions about how to win back voters and about who will lead it, with the next presidential election two years away. It described the result as a historic electoral setback for the party.

The reports did not give the number of congressional seats that changed hands, or the number of governorships each party held before Tuesday's vote.

How the reports differ

The Associated Press led with the technology industry, reporting that AI data centers had taken a beating in the midterms and that a reckoning may lie ahead for tech giants. France 24 led with the Republican Party instead, describing a historic defeat and Trump's new status as a lame-duck president, and asking who will now lead the GOP. Nikkei Asia was alone in counting five governorships flipped, in naming Gina Hinojosa's call to pause data center construction, and in tying the vote to Honda, Mitsubishi Heavy Industries and Nippon Steel. Audacy reported the break-in at a Microsoft site in Amsterdam and framed it as part of a European backlash, while the Post Register carried photographs of protests in the Netherlands. None of the outlets gave a figure for congressional seats won or lost.

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