White House Economic Adviser Kevin Hassett Dismisses Midterm Backlash Against AI Data Centers

The White House expects the national build-out of artificial intelligence data centers to proceed on its projected timetable, even after voters approved dozens of ballot initiatives aimed at curtailing facility development across the United States.

Appearing Friday on CNBC's "Squawk on the Street," National Economic Council Director Kevin Hassett said midterm election results will not derail near-term computing infrastructure. In an interview reported by CNBC Business (https://www.cnbc.com/2026/11/06/data-centers-ai-elections-hassett.html), Hassett acknowledged mounting local resistance but asserted that existing project schedules remain protected from municipal policy shifts.

Voter opposition to server facilities surfaced across the country during the 2026 midterms, following a campaign cycle in which Democrats achieved broad congressional gains. According to tracking data compiled by Ballotpedia, voters passed measures restricting data center development in at least 46 of roughly 50 initiatives on state and local ballots. A CNBC Voter Poll found that 56% of midterm voters considered data center expansion a crucial or major concern; among those identifying it as crucial, 62% backed generic Democratic candidates.

Hassett said the newly passed municipal bans would not impede facilities already under construction or slated for near-term delivery. Projects scheduled over the next couple of years remain outside the operational reach of the ballot measures, he argued, while developers retain the option to route future capital expenditures into jurisdictions with accommodating governors.

While stating that the administration respects local decisions to restrict development, Hassett predicted that municipalities imposing bans would eventually reverse course once the tax receipts and economic activity generated by server infrastructure become visible.

The regulatory friction coincided with financial market turbulence. Hassett pointed to investor anxiety over regulatory policy under incoming majorities as a driver of a steep tech-led market retreat on Thursday. He maintained that broader economic momentum remains durable enough to absorb any localized slowing in data center deployment without jeopardizing macro growth.

Federal backing for high-density computing infrastructure remains central to the administration's technology strategy, which frames computing scale as pivotal to the international artificial intelligence race. President Donald Trump, who has referred to advanced machine learning systems as "super intelligence," reaffirmed that policy in a Truth Social post on Friday, stating he will partner with states seeking to host computing sites.

For infrastructure operators, the coming quarters will show whether hyperscale developers can steer high-voltage grid connections and capital expenditure into welcoming states quickly enough to meet compute forecasts without running into regional power bottlenecks.