A sharp selloff in artificial intelligence-related stocks following the midterm elections is raising questions about the future of data center development and whether proposed restrictions elsewhere could steer more projects toward Utah. (Photo: KUTV)
The Nasdaq Composite fell more than 5% Thursday as investors weighed concerns about AI spending and the possibility of tighter scrutiny of the infrastructure powering the industry.
In Texas, Democratic Gov.-elect Gina Hinojosa campaigned on a statewide data center moratorium. Her victory added uncertainty for developers in one of the country’s major markets for the facilities.
MORE: As data centers face backlash, new report points to economic benefits
For Allen Smith, the debate extends beyond financial markets and election results.
“When we moved out here, that’s what brought us here. The open field,” he said.
Smith’s family has lived in their West Jordan home since 1994. A massive data center now stands nearby, obstructing what had been an open view toward the Oquirrh Mountains. The family described noise and exhaust as nearly constant.
“We’re not used to it all,” he said. “It’s an interruption. If you’re out on your driveway, if you’re trying to carry out a conversation, if you’re in your backyard, it interrupts.”
Their concerns reflect broader resistance to local data center development.
National exit polling found 76% of voters opposed construction of a new data center in their community, according to reporting by Stateline.
Josh McCrain, a political scientist and assistant professor at the University of Utah, said the facilities have become a focal point for concerns extending beyond their physical footprints.
“Data centers are capturing this, like, uneasiness and this distrust to both what AI is doing to society and the unknown impacts and these environmental concerns surrounding them,” McCrain said.
Dr. Brian Moench, president of Utah Physicians for a Healthy Environment, worries that restrictions in other states could make Utah more attractive to developers.
“I think it makes a lot of sense to be very concerned that we’re going to have an even more intense barrage of proposals for data centers than we’ve seen already,” Moench said.
Moench, who has advocated for tighter restrictions, cited concerns about air pollution, water consumption, and the infrastructure needed to support large facilities.
“We are calling for a moratorium on all data center construction in the state of Utah,” he said.
State officials have also emphasized potential economic benefits.
A Stratos project FAQ published by the governor’s office points to private investment, construction jobs, permanent employment and revenue for state and local governments.
In a June statement, Senate President Stuart Adams argued that economic development and environmental protection could coexist. He also called for a 75% reduction in the proposed Stratos project area, stronger conservation commitments, and greater transparency.
Adams later lost his Republican primary after the project became a prominent issue in the race.
Utah already has oversight requirements for data centers. A legislative policy brief describes water-use reporting requirements and a framework established by Gov. Cox that includes protecting water resources, air quality and utility customers while promoting rural economic growth.
2News reached out to several data center developers, including the one behind Smith’s home in West Jordan, to ask:
Do they see the election results as a message to data center developers, how might they shape the way future projects are proposed and discussed with local communities, and what they think responsible data center development in Utah should look like?
We did not hear back before publication.
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