Residents’ Opposition Puts Data Centre Projects at Risk

Jakarta, CNBC Indonesia – Widespread opposition among the US public to the construction of giant data centres has found a political outlet. The Democratic Party’s mid-term election victory, which enabled it to take control of Congress, has encouraged residents who have long opposed environmental exploitation and the rising strain on energy supplies caused by data-centre expansion.

The prospect of a policy shift immediately shook Wall Street on Wednesday (4 November), local time. Data-centre operators’ shares tumbled as investors anticipated tighter government scrutiny.

Shares in Applied Digital (APLD) and CoreWeave (CRWV) fell by 8.8% and 9.5%, respectively. The steepest decline hit Cipher Digital (CIFR), which plunged 21%, Reuters reported on Thursday (5 November 2026).

Residents’ concerns ahead of the election

Throughout the year, data-centre construction has fuelled a wave of opposition and public protests across the US, including in states such as Texas and Georgia, which are major data-centre hubs.

Residents have voiced concern over huge electricity consumption and the intensive extraction of water resources, which they say threatens domestic supplies. The projects are also seen as driving up household electricity bills and potentially damaging the environment in surrounding communities.

Under the previous Republican-controlled Congress, the expansion of AI infrastructure projects generally proceeded unimpeded, supported by tax incentives and regulatory concessions. The shift in the political balance after the mid-terms puts sustainability and the protection of residents at the forefront.

Tighter scrutiny and rising costs expected

Although analysts say new regulations will not immediately halt projects already under way, Democratic control of Congress is expected to widen the scope for investigations and hearings into the environmental impact and land-use planning of data centres.

The regulatory pressure is expected to squeeze data-centre operators’ profit margins, as they are required to take greater responsibility for environmental impacts and energy costs.

“Building AI infrastructure will become much more expensive, not disappear. Reduced tax incentives and greater responsibility for electricity and water costs will weigh on returns,” said Mark Malek, chief investment officer at Siebert Financial.

The tougher stance also hit shares in electricity suppliers and supporting-equipment providers. GE Vernova (GEV) fell 11.5%, while Constellation Energy (CEG) and Vistra (VST) – two major energy suppliers to data-centre projects in Texas – dropped 9.2% and 15.4%, respectively.

The Democrats’ success in taking control of Congress demonstrates how local communities’ concerns about the ecological impact of technological development have made their way onto the highest level of policymaking in Washington.