National Economic Council Director Kevin Hassett said he expects data center growth to continue as projected despite the Democratic midterm wave. Voters backed restrictions in most data center ballot measures, and Hassett tied Thursday's tech-driven market plunge to uncertainty over the political change.
Hassett said Friday he expects data center growth to continue as projected, even after voters backed limits on the buildout in the midterm elections. He spoke on CNBC's "Squawk on the Street."
Voters back limits in most ballot measures
According to Ballotpedia's tally, majorities voted to restrict development of the facilities in at least 46 of the roughly 50 such initiatives on 2026 ballots. The CNBC Voter Poll also found 56% of midterm voters called data centers a crucial or major issue. Among those who considered it crucial, 62% favored the generic Democratic candidate.
Data centers are a key part of President Donald Trump's push to win the global artificial intelligence race. Hassett acknowledged the measures but argued they leave near-term projects untouched. He said data centers scheduled over the next couple of years aren't affected by the ballot initiatives.
Hassett expects growth to continue
Hassett said he expects expansion in states with more welcoming governors. He also suggested that hostile states will eventually come around. As he put it, "plenty of room in the U.S. for data center growth to continue" remains.
He added that a slower pace would not end the boom: you could take something growing as fast as data centers and make it grow a little slower, and the economy would still be a blockbuster.
Hassett blames political uncertainty for the sell-off
Hassett also blamed Thursday's tech-driven market plunge on uncertainty about what the political change means for data centers. He said a new majority may go in and muddle around in the sector, and he thinks the stock market is anxious about that. Even so, he said he is still very, very optimistic about what happens going forward.
Trump also weighed in on Truth Social on Friday. He wrote that he is 100% in favor of Super Intelligence and will work with states that want data centers.
Source: CNBC
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