Data Centers: NEC Chief Predicts Construction Continues Despite Voter Restrictions

National Economic Council Director Kevin Hassett stated on Friday that data center construction will proceed according to previous schedules, despite recent state ballot initiatives limiting facility development. He told CNBC’s Squawk on the Street that the projects scheduled for the next few years are not currently impacted by the new local regulations.

Voters in at least 46 of the approximately 50 state-level measures on 2026 ballots voted to restrict data center growth, according to Ballotpedia. These restrictions target a sector the Trump administration views as essential to winning the global race in artificial intelligence. Hassett acknowledged the local decisions while emphasizing the vast size of the country.

“We respect the localities that decide that’s what they want to do,” Hassett said. He noted that the data centers planned over the next couple of years are unaffected by these ballot initiatives. He added, “There’s plenty of room in the U.S. for data center growth to continue, as it was projected ahead of the election.”

The NEC director expects expansion to continue in states with supportive governors. He predicted that resistant states will eventually reconsider their positions. “That, or what’ll happen will be that the benefits of the data centers will be so obvious that people decide to change their minds about the way they regulate them,” he said.

Hassett linked Thursday’s tech-led market selloff to investor concerns over the election results. He attributed the anxiety to uncertainty about the political implications for the sector. He argued that any slowdown would be modest. “You could take something that’s growing as fast as the data centers and make it grow a little bit slower, and you still have a blockbuster economy,” he said.

A CNBC Voter Poll found that 56% of midterm voters considered data centers a major or crucial issue. Among those who called the issue crucial, 62% favored the generic Democratic candidate. President Trump posted on Truth Social on Friday, reaffirming his support for the technology. He wrote, “As President, I am 100% in favor of Super Intelligence (SI), and will work with the many States in the U.S. that want to become RICH by having them.” He added that the facilities are gold and that only foolish leadership will say no to the riches they bring.

Hassett said he expects the sector to maintain its pace in friendly jurisdictions. The administration continues to push the narrative that these facilities drive economic wealth. Trump’s post signaled that his backing has not wavered despite the midterm setbacks. The next phase of construction in cooperative states is expected to proceed without interruption.