Data Center Expansion to Persist Despite Voter Restrictions, Hassett Says

Kevin Hassett, Director of the National Economic Council, expressed confidence on Friday that the expansion of data centers across the United States will proceed largely as planned, despite notable voter opposition to such developments in recent elections. Speaking on CNBC's "Squawk on the Street," Hassett acknowledged that numerous states had passed measures aimed at restricting the growth of data centers, which are central to President Donald Trump's strategy to advance American leadership in artificial intelligence.

According to a Ballotpedia report, nearly 46 out of approximately 50 ballot initiatives in the 2026 midterm elections sought to limit or regulate data center construction in various localities. These efforts reflect a growing public concern about the impact of large-scale tech infrastructure projects on communities and environments. However, Hassett emphasized that while these decisions are respected at the local level, they do not significantly hinder the broader national plans for data center development scheduled over the next few years.

"America is a big place," Hassett said, pointing out that existing projects remain unaffected by these newly imposed restrictions. He further noted that there remains ample room for data centers to grow in states governed by officials who support the technology sector. Even in regions currently resistant to data center expansion, Hassett anticipates a shift in attitudes as the economic benefits of these facilities become increasingly apparent.

"Either states will adjust their regulations, or the advantages of data centers will become so clear that local opinion will change," he added. Hassett’s remarks suggest a belief that the initial pushback against tech infrastructure may soften as communities experience direct economic gains, such as job creation and increased tax revenue.

Addressing the recent tech sector market downturn, Hassett attributed part of the volatility to uncertainty surrounding the political landscape and its potential effects on data center policies. "The new political majority might introduce some unpredictability, which understandably makes investors cautious," he explained. Nevertheless, he remains optimistic about the overall economic outlook, highlighting strong growth indicators in other sectors. "Even if data center growth slows somewhat, the economy will continue to perform at a high level," Hassett said.

Public opinion data from CNBC’s Voter Poll underscores the significance of data centers in the political arena. The poll found that 56% of midterm voters considered data centers either a crucial or major issue. Among those who viewed it as crucial, 62% supported the Democratic candidate, indicating a partisan divide on technology infrastructure policies.

President Trump has been a vocal proponent of artificial intelligence and the associated data center infrastructure. In an effort to counteract the perception that these facilities are unpopular, he has rebranded the technology as "super intelligence," or SI. Following the midterm results, Trump reaffirmed his commitment to promoting the industry through a post on his social media platform, Truth Social. He wrote, "As President, I am 100% in favor of Super Intelligence (SI), and will work with the many States in the U.S. that want to become RICH by having them. They are GOLD, and only foolish leadership will say 'NO' to the riches they bring!"

Data centers play a critical role in supporting the infrastructure needed for cloud computing, artificial intelligence, and other advanced technologies. Their growth reflects broader trends in digital transformation that are reshaping industries and economies worldwide. The tension between local opposition and national strategic priorities illustrates the challenges faced by policymakers balancing technological progress with community concerns.

As the United States competes globally to lead in AI innovation, the trajectory of data center development will remain a focal point of debate. Hassett’s comments suggest a belief that despite midterm setbacks, the momentum behind data center expansion is unlikely to be derailed in the long term.