Democratic victories in several major US technology hubs have raised fresh questions about the expansion of artificial intelligence data centres, after candidates who promised tougher restrictions on new projects won key races in Tuesday’s midterm elections.

Texas, Georgia and Ohio, which have attracted major technology companies seeking to build facilities to power AI systems, elected Democratic candidates who have pledged to strengthen oversight of the industry.

The results highlight growing public opposition to data centres, which require large amounts of electricity and land and can generate noise and pollution. According to research project Data Center Watch, at least 45 data centre developments were disrupted by local opposition during the second half of 2026.

A 2025 Pew Research Center survey found that more than half of Americans were more concerned than excited about artificial intelligence. An NBC exit poll also indicated that more than 50% of voters considered AI and data centres a major or crucial factor in their decision at the midterm elections.

US President Donald Trump has supported the rapid expansion of data centre infrastructure. In September, he dismissed criticism of the facilities and concerns about AI safety, describing opposition as a hoax and arguing that data centres generate wealth for companies and states.

Texas has attracted major technology groups, including OpenAI, Anthropic, Oracle, Microsoft, Google, Meta and Amazon, through tax incentives and offers of land and energy supplies.

Republican Governor Greg Abbott had previously sought to establish Texas as a leading AI centre. However, he later paused permits for new data centre projects while an audit was carried out. The decision followed pressure from Democratic candidate Gina Hinojosa, who had promised a temporary halt to construction until stronger legal safeguards were introduced.

The election results also prompted a reaction from billionaire Elon Musk, a major Republican donor who contributed $474 million to Republican efforts during the midterm campaign. Musk, whose xAI company operates the Colossus supercomputer facility in Memphis, wrote on X: “data centres in space looking pretty appealing right now.”

Ohio recorded particularly strong resistance to new developments, with voters in 15 municipalities approving bans or other restrictions on data centre projects.

The state has been a target for major technology investment. Meta has planned to spend $1 billion on a data centre in Ohio, while Amazon Web Services has announced plans for a $2 billion investment.

The debate over data centre construction has intensified as technology companies race to expand computing capacity for artificial intelligence. While developers argue that the facilities support economic growth and technological development, opponents have raised concerns about electricity consumption, environmental effects, local infrastructure and the impact on residential communities.

The Democratic victories could increase pressure on state authorities and technology companies to address those concerns as they seek approval for further projects.

Anthropic reported a 47 per cent increase in third-quarter revenue to $17 billion (€15.1 billion), but returned to an operating loss as spending on computing capacity and long-term infrastructure commitments mounted ahead of its planned Nasdaq listing.

The US company behind the Claude artificial intelligence models recorded revenue 12 times higher than a year earlier, according to an updated prospectus filed with US regulators on Monday. However, it reported an operating loss of $567 million (€506 million), compared with a profit of $974 million (€870 million) in the previous quarter.

Anthropic attributed part of the reversal to $5 billion (€4.46 billion) spent on short-term computing capacity after demand exceeded the company’s existing long-term arrangements. The filing said this capacity currently costs significantly more.

The company also recorded a $2 billion (€1.78 billion) non-cash charge linked to a programme matching employee donations. Adjusted operating income reached $2.5 billion (€2.23 billion), representing a 15 per cent margin, down from 19 per cent in the second quarter.

Anthropic’s net loss widened to $23.3 billion (€20.8 billion), compared with $12.1 billion (€10.8 billion) a year earlier. During the first nine months of the year, it recorded losses of $104 billion (€92.9 billion) against revenue of $33.2 billion (€29.6 billion). The company said $94.3 billion (€84.2 billion) of the losses resulted from non-cash accounting charges as the value of convertible notes increased.

The prospectus also disclosed approximately $895.4 billion (€800 billion) in purchase and lease commitments, largely related to computing infrastructure. The commitments are almost seven times the $131.8 billion (€117 billion) Anthropic held in cash and short-term investments at the end of September.

Around $70 billion (€62.5 billion) is due within 12 months, while approximately $450 billion (€402 billion) falls due by the end of 2030. A further $214 billion (€191 billion) is cancellable or subject to conditions.

The company warned that customers breaching its usage rules or commercial terms accounted for between 5 and 7 per cent of revenue during the first nine months. It said enforcement measures could reduce revenue and future growth.

Anthropic also disclosed potential risks from rapid advances in artificial intelligence, saying it might soon reach its own threshold for dramatically accelerated progress in which AI systems help develop more capable models. The company warned that such developments could pose significant safety concerns, although it has not classified any existing model as having reached that threshold.

The updated filing comes as Anthropic prepares to list on Nasdaq under the ticker ANT. It has not yet announced a share price range, but securities rules require publication of a prospectus at least 15 days before a company begins its investor roadshow.

Anthropic could therefore begin marketing its shares as early as next week, with a listing possible from the week of November 16.

Investor expectations for the company’s valuation have reportedly eased to around $1.5 trillion (€1.33 trillion), down from earlier estimates of approximately $2 trillion (€1.78 trillion), following a technology stock sell-off linked to concerns about AI investment costs. The revised figure would still exceed the $965 billion valuation set during its private funding round in May.

Argentina’s President Javier Milei is seeking to turn Patagonia into a major destination for artificial intelligence data centres, offering international technology companies tax incentives and a promise of minimal regulation as he competes for billions of dollars in investment.

While communities in parts of the United States and Europe are questioning the environmental and electricity costs of large data centres, Milei’s government is actively encouraging their development. The president told the US Chamber of Commerce in Washington last month that Argentina would not regulate artificial intelligence, saying: “We are going to leave it free.”

The country’s southern Patagonia region offers several advantages for energy-intensive facilities, including large areas of available land, cooler temperatures, strong winds and access to natural gas from the Vaca Muerta shale formation.

According to visitor records obtained by The Associated Press, Milei and his aides have held meetings with technology industry figures, including venture capitalist Peter Thiel and representatives of OpenAI, Amazon, Google and Oracle.

Polish renewable energy company Green Capital plans to build a $3 billion data centre in Patagonia, which would provide computing capacity to major technology companies. The project has yet to secure a customer. The company has leased 130,000 hectares of land from 14 local landowners.

Green Capital’s Marta Zlotkowska said Patagonia had emerged as the preferred location after the company compared potential sites worldwide, citing access to land and energy resources.

Tax incentives and questions over benefits

Milei is also promoting a scheme that would reduce corporate income tax from 25% to 15% for investments of at least $1 billion in artificial intelligence and other emerging industries. The proposal is awaiting approval by Argentina’s Senate.

However, critics question how much local communities would gain from the projects. Data centres typically employ relatively small workforces, while the proposed incentives do not require companies to reserve computing capacity for Argentine users or disclose their energy and water consumption.

Environmental concerns are particularly strong near Trelew, a city close to Green Capital’s proposed site. Residents say they have limited information about the project’s water requirements, energy sources and potential impact on local resources. Environmental assessments remain underway and permits have not yet been secured.

If operated continuously at its projected peak capacity, the planned facility would consume around 2.7 times the electricity used by Buenos Aires throughout 2025, according to an AP calculation. Green Capital says it intends to generate its own power through wind, solar and gas-fired facilities.

Opposition grows over regulatory safeguards

Some technology experts warn that Milei’s opposition to AI regulation could leave the country exposed to risks involving surveillance, cyberattacks and personal data. Officials have also acknowledged uncertainty over rules governing copyrighted material used to train AI systems and the transfer of personal information abroad.

In Trelew, residents have organised a campaign called “Trelew Free of Data Centres”, reflecting growing concern over the environmental consequences.

Despite the opposition, some local landowners see the projects as an opportunity to diversify income as drought, rising costs and declining wool production put pressure on traditional sheep farming.