Democrats take both chambers, raising data center moratorium risk

Democrats won control of the House and Senate in Tuesday's midterm elections. Construction groups say the result raises the odds of state data center moratoriums and lengthens the wait for a federal transportation bill.

Daniel Fisher, senior vice president of government and external affairs at the Associated Equipment Distributors, told Construction Dive he expects many planned data center projects to be put off or delayed. He said the shift would have a minimal effect on total demand for data center construction.

For allocators, the immediate effect is on scheduling, not total demand: industry sources expect total demand for data center construction to hold even as projects in states where moratorium measures advance face delay. The longer wait for a federal transportation bill adds a second schedule problem, this one for surface transportation work.

Thirteen states attempted data center moratoriums in 2026, with New York, Oregon and Texas adopting statewide bans, as Private Infrastructure Daily previously reported, citing Data Center Dynamics. The moratorium push predates the election.

Michael Guckes, chief economist at ConstructConnect, said policy changes around data centers could add costs, delays and uncertainty to what has been an important source of construction growth. "A change in Congressional control would not, by itself, imply a halt in data center construction," he told Construction Dive.

Kristen Swearingen, vice president of government affairs at Associated Builders and Contractors, said: "It heightens the prospect for moratorium discussions in states like Texas and Michigan, but it doesn't change what is coming either way." She said grid buildouts represent a large opportunity and that governors of both parties are seeking to lead on regulatory frameworks for data center construction.

The transportation bill was long-awaited before the vote and now faces a longer wait.