Bill McKibben and Bernie Sanders. Source ChatGPT.com

The Democrat Midterm Victory has Created Data Center Opportunities for Other Countries

Essay by Eric Worrall

The USA was on track to secure its position as the AI center of the world. Then AI-hating Democrats won the midterms.

A Big Loser at the Ballot Box: New Data Centers

By Eliot Brown
Reporter

It’s a rough morning for data centers on the ballot.

Gubernatorial candidates pledging statewide data-center pauses won in Texas, Georgia and Michigan, while voters overwhelmingly passed moratoriums on data center construction in an array of local city and town ballot initiatives around the country.

Data-center stocks slid premarket; keep reading for more details on the reaction.

…

The stakes are high in Texas, the country’s epicenter of data-center construction, as Democrat Gina Hinojosa defeated Republican Greg Abbott with 52% of the vote. Hinojosa made opposition to data centers a key part of her platform, pledging a moratorium on new construction, pending new legislation that gives local communities greater say in future construction.

Ohio, another hub of data center construction, elected as governor Democrat Amy Acton, who pledged a conditional moratorium on data centers, saying that new servers needed to meet labor and energy requirements.

…

Read more: https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-11-04-2026/card/a-big-loser-at-the-ballot-box-new-data-centers-lUJTT0Zz4iGxfrmRUSN4

AI does not have to be located in the USA to shake up US jobs. Business owners will just plug into Chinese data centers instead.

Lots of businesses were already opting for the Chinese AI option before the midterms, because of China’s low-cost energy advantage. AI cost is dominated by energy cost. But President Trump’s enthusiasm for AI and for affordable US energy was keeping the USA in the game.

TECH

Chinese AI models surge in global popularity — and Washington is worried

PUBLISHED SAT, SEP 26 2026 1:00 AM EDT
Kai Nicol-Schwarz @IN/KAINS

…

AI was a major focus as U.S. President Donald Trump and Chinese President Xi Jinping met this week.

The most advanced U.S. models lead most benchmarks, but Chinese companies like DeepSeek, Z.ai and Alibaba have released new models with major performance gains in tasks such as coding.

According to usage data shared with CNBC, the global adoption of Chinese models by companies has increased substantially in 2026.

Chinese AI models have gone from a relatively small share of usage to a majority on two major developer platforms that provide gateways for companies to access models from different providers. On OpenRouter, they accounted for 57%-67% of tokens used in the week of Sept. 14, up from 6%-13% in February. On Vercel, their share rose to 55% in August from 11% in January.

…

Read more: https://www.cnbc.com/2026/09/26/china-ai-global-adoption.html

Those figures measure which models businesses are choosing, not where the servers sit. But the economics point the same way: when energy dominates the cost of AI, the countries with cheap power and permission to build will host the industry. Now China has a golden opportunity to secure a strong lead in artificial intelligence.

If anyone still has doubts, AI is real and it works. I use AI extensively in my day-to-day work. The following is a real-time video of me using AI to code a simple game in half an hour. Without AI assistance it would have taken me four hours, so on this occasion AI made me eight times as productive.

Software development is not an isolated case. A recent MIT study found that just under 12% of US jobs can already be replaced by AI. I expect this to soar to 30% of all jobs by 2040.

MIT study finds AI can already replace 11.7% of U.S. workforce

PUBLISHED WED, NOV 26 2025 10:00 AM EST
UPDATED WED, NOV 26 2025 12:16 PM EST
MacKenzie Sigalos @KENZIESIGALOS

KEY POINTS

  • Massachusetts Institute of Technology released a study that found that artificial intelligence can already replace 11.7% of the U.S. labor market.
  • The study was conducted using a labor simulation tool called the Iceberg Index, which was created by MIT and Oak Ridge National Laboratory.
  • For lawmakers preparing billion-dollar reskilling and training investments, the index offers a detailed map of where disruption is forming down to the zip code.

Massachusetts Institute of Technology on Wednesday released a study that found that artificial intelligence can already replace 11.7% of the U.S. labor market, or as much as $1.2 trillion in wages across finance, health care and professional services.

The study was conducted using a labor simulation tool called the Iceberg Index, which was created by MIT and Oak Ridge National Laboratory. The index simulates how 151 million U.S. workers interact across the country and how they are affected by AI and corresponding policy.

…

Read more: https://www.cnbc.com/2025/11/26/mit-study-finds-ai-can-already-replace-11point7percent-of-us-workforce.html

See the MIT study here.

Not every industry is as affected by AI as software development currently is, but make no mistake: the AI industry has its pedal to the metal, trying to expand the range of work it can replace. Right now my industry feeds are full of advertisements for lawyers willing to train artificial intelligence legal advisors in return for obscene amounts of money. Law and accountancy may be the next professions to fall.

This isn’t the end of jobs. Plenty of jobs will resist an AI takeover for a long time, especially anything involving complex, unpredictable situations and a lack of accessible training data. But AI is an industrial revolution on a par with the dawn of the machine age in the late 1700s and early 1800s. Many jobs we take for granted today will no longer exist in a few years.

There will still be jobs, just maybe not the job you currently do.

Plenty of issues other than AI shaped the midterm result. And the impact of data centers on the people living near them has been handled badly. AI’s demand for electricity and water drives up local costs if those needs are not properly addressed when the data center is built.

Personally, I don’t want to work with Chinese AI. I don’t trust China to protect my privacy or respect my business confidentiality. China has a troubling national security law which requires private businesses to surrender data to the Communist Party on demand, without significant due process. That is an obvious opportunity for corruption, if seized data is then sold by corrupt officials to other parties.

But if a shift in US policy drives up the cost of US AI, many businesses won’t have a choice. If your competitors are operating on a lower cost base because they do business with China, the choices are to do as your competitors do, or start talking to your lawyers about Chapter 11.

My day job, software development, is likely to be one of the first professions to fall. Right now AI functions as a very capable junior programmer. It’s like having a team of low-cost programmers on call whenever I need software built. When AI moves up the capability ladder, which might be months or years from now, I’ll need to find something else to do. I can see what is coming, so I’m planning for it.

But restricting the construction of data centers in one country will not prevent the advance of AI. All it can do is ensure the benefits of hosting AI go to someone else, someone who, by hosting the AI your nation’s businesses are rapidly coming to depend on, will have the power to shut down much of your economy with the flick of a switch. Let’s hope the winner of that particular economic arms race is not China.

4.3 6 votes
Article Rating
Subscribe
Notify of
34 Comments
November 6, 2026 6:51 pm

Here’s different take on the fate of AI / Data-Centers in these U.S.-of-A.:
————
Having declared itself a threat and having succeeded in proving its weaponization actually works, it will go the way of nuclear armaments (and to a lesser extent, the nuclear-power production) and be absorbed into the National Security / Military-Industrial Complex.
————
The Midterm-Election Revolt against their construction was no ordinary outbreak of NIMBY-ism;
It was more like deciding one didn’t want to be bribed to live next to the construction of a Military Base, which incidentally is where the Centers are likely to be built out & powered up, forthwith …
Mostly by the same charming war-profiteers who have been running the show { Anthropic et al. } until now, but soon under the command & watchful eyes of Men-in-Uniforms.
————
Credit where due: amgreatness.com/2026/11/05/the-midterms-and-AIs-credibility-problem/

Reply to  Whetten Robert L
November 7, 2026 10:32 pm

You raise a very valid point Robert.

Reply to  Ozonebust
November 8, 2026 1:51 am

Thanks, Ozonebust. I’m afraid it was not only Un-Original (cf. the link provided) but also decidedly Un-Welcome here.
One can only wish that the Down-Voters would provided a Clue (couple words, even insults) to indicate what particular they loathed! Could it simply be they are over-inve$ted in the Anthropic-IPO riches, or the genius reputation of the AI Founders?
Then we could all gain from the disagreement. Sigh.

Bob
November 6, 2026 7:11 pm

Yet again I am in the uncomfortable position of defending AI. Lots of bad things could happen using AI the same as lots of bad things can happen driving a car or skiing or building sky scrapers or being in the military or law enforcement or mining or logging or what ever. The point is we don’t live in a risk free society. The advantages gained by engaging in some activities is far greater than the risk. No one is saying AI is risk free but ignoring the advantages AI offers far outweigh the risks especially considering that AI is going to happen whether we like it or not. We can live with AI regulated and created here in the US or we can sit on our ass and deal with AI created by others who would be glad to use it to harm us. It is an easy choice for any thinking adult.

Neil Pryke
November 6, 2026 8:49 pm

I hate AI…

That doesn’t make me a Democrat…

The Democrats claim to hate AI, along with many other things, but they use it…

Let AI live or die by its own sword…

hiskorr
Reply to  Eric Worrall
November 7, 2026 5:52 am

Excellent example of the futility of railing against the inevitability of “progress”. You could make the same point about agriculture going from 90% to less than 5% of the US labor pool in the 20’th century.

Reply to  Neil Pryke
November 7, 2026 11:59 pm

I hate people who use bold italics without good reason other than “look at me”

OK, hate is too strong a word

November 6, 2026 9:50 pm

It has created opportunities for other countries to partipate in the bubble bursting

Capt Jeff
November 6, 2026 10:23 pm

What an opportunity this could be for Mexico.

November 6, 2026 11:36 pm

Thanks to Eric Worall, your AI generated game is addictive fun and I am impressed with the other potential and applications AI in general has.

Sadly also it also paves the way to our future digital mandated cage/prison. So unless you figure out how to keep the fucking government(s) out of it (and good luck with that) I am rather inclined to say no than yes to any datacentre.

For the current panic I see no fundmental ground, Dumborats as well Retrardlicans are heading the same way: total digital control of everyone and everything so have fun folks watching at close range idiots jiggle double edged knifes.

“AI” or better said software is the tool, datacentres are the backbone of the evil to come.

Reciting Goethe’s “Der Zauberlehrling”:

“oh Herr die Not ist groß, die Geister die ich rief, die werde ich nicht mehr los”.

As the sarcast I am let me finish with a proposition to AI fantastics. For the next AI generated movies may I suggest some titles (the script is easy, life, George Lukas/Disney/Unholywood already wrote most of it)

Episode 46, Fartwars – the mummy returns)
Episode 47, Fartwars – the Trumpire strikes back
Episode 48, Fartwars – a new Woke (!?!)

Back to no future I, II and (hopefully not) III

as a documetary on Donald the Duck:

How to loose friends and alienate people

The art of letting my foe win easily

My life as an elefant in a porcelan shop

And last but not least a sitcom title

a(nother) neverending story

the german spin off is funnier (credit goes to the Muppetshow)

Die Geschichte eines Quacksalbers, der vor die Hunde ging

Have fun folks, I had mine 😉

hdhoese
Reply to  varg
November 7, 2026 5:26 pm

“This isn’t the end of jobs. Plenty of jobs will resist an AI takeover for a long time, especially anything involving complex, unpredictable situations and a lack of accessible training data. But AI is an industrial revolution on a par with the dawn of the machine age in the late 1700s and early 1800s. Many jobs we take for granted today will no longer exist in a few years.”

While the last sentence seems reasonable, it seems to me that the dawn of electricity and discovery of petroleum produced a rising curve difficult to match. My grandfather bought a farm without electricity about a century ago which became available sometime before WWII. He never flew.

Our son had a successful career with computers and seemed to agree that AI may be more speed than brains. He also had a professor friend worried about the incompetence of students. There has been a lot of baggage from our computer revolution which seems to help produce at least the mechanism for all the statistical failures we have and too much centralization. A few years ago managers of oyster fisheries were faced with, as one told me, “all we get from academia are models.” Interestingly the oyster profession, of which I have enough experience, has been lately to be concerned about what appeared to be adoption of models that are ‘boilerplating.’ Also I just ran across a letter from a colleague friend who confirmed the concern of professionals with the retirement of a long term biologist who “was in all likelihood rather close to the true value of numbers of whooping cranes on the winter range” to be replaced by “statistical validity over biological utility with “ballooned confidence intervals.”

Writing as someone too hyperactive before it was classified as a disease and now too old to worry about it I am still going to ask our broker, especially about speed and “complex situations.” We’ve had plenty of unpredictables, maybe fewer of these. “Die Geschichte eines Quacksalbers, der vor die Hunde ging.”

Phillip Chalmers
November 7, 2026 12:04 am

The silver lining of the latest cloud. Maybe not the only one, we could have just witnessed the decline and fall of the American Empire. IMO, good news.

SxyxS
Reply to  Eric Worrall
November 7, 2026 4:06 am

As someone whose country has been destroyed by the USA it ain’t the worst news.

As the USA has been involved in one way or another in roughly 3/4 of all conflicts since the end of WW2 there is a reasonable chance that global conflicts(+ the whole NGO regime change fakery that started with USAID and NED) would scale down significantly if the Empire falls, as the Empires military budget is that of the other top10 countries combined.

Without unlimited access to the Empires world reserve currency spending the number of conflicts would automatically scale down as the City of London and Wall Street bankers couldn’t run the war machine with their own money for long at this current level.

China is btw no communist country – in this case no one in the USA would fear China in economic terms for obvious dysfunctional reasons , let alone force other countries to not sell them AI chips ( the oh- so free markets, I guess)

China is pretty much a command capitalist country like the US.
Except that Chinas top down structure is openly run by the party while the US is run by Wall Street Oigarchs(thus 3 totally unqualified, unelected NY billionaires in top governmental positions right now) and their lobbyists, where single billionaires can buy the politics as Adelson did (she paid roughly 1.25 dollars per vote to nullify the campaign promises).

And since the USA holds stakes in about 48 companies it is probably more than command capitalism – the merger of state and corporations.(remember when Trump appeared in China with a dozen top CEO’s)
But I forgot the English word for that.

Mr.
Reply to  Eric Worrall
November 7, 2026 5:45 pm

I said the word “Tiananmen” once in a table conversation a busy Chinese restaurant.
The whole place went immediately quiet.
The boss-man and all the waitstaff looked daggers at me.

I just smiled around innocently at everyone.
Eyes all dropped back to their bowls and chopsticks.

But I never ventured back to that China Town.
(Remembering what happened to Jack Nicholson).

Reply to  SxyxS
November 7, 2026 10:42 pm

It was the USA merchant bankers who funded Hitler. Bush seniors father was involved as I understand. History, what a drag.

Reply to  Eric Worrall
November 7, 2026 10:40 pm

Definition of …
Communism is a political and economic ideology that aims to replace private property and a profit-driven economy with public or communal ownership of the major means of production (such as factories, land, and mines).

That’s certainly not China.
China has the cheapest electricity, simply because they have a central government.

Richard Rude
Reply to  Phillip Chalmers
November 7, 2026 2:55 am

Of course there is no “American Empire”. Only a delusional fool would believe there is.

SxyxS
Reply to  Richard Rude
November 7, 2026 5:31 am

Of course not.

850 military basis all around the world.
Permanently at war.
Permanent regime changes.
Forcing US companies and US military equipment.
Forc… convincing Arabs to go Petro Dollar and invest a good chunk of their gains in US stock market.
Convincing Japan into Plaza agreement /yen carry trade.
Abductiing Venezuelas president Stealing the oil after failing to install a puppet president.(Guaido)
Installing a puppet regime in Argentina that abandons independence in favor of the dollar.
Home of IMF,UN and free reign over NATO.

“I want 2 bottles of wine, a six pack, 3 slices of bread and 5 donuts.
And can you give me on top Greenland, Venezuela and Cuba please”

I really dunno how crazy people have to be to assume that this could be in any shape or form an Empire.
Those crazy conspiracy theori…what? Putin??
Yeah, Putin is trying to extend the Russian empire in Ukraine – absolutely unprovoked.
Ain’t that obvious?

Rahx360
November 7, 2026 12:37 am

Jobs will not disappear, you will just have a different job. Like stocking shelves at minimum wage. Enjoy your minimum wage life instead of a senior software developer.

The west is already filled with nihilism, people cutting tits of because having no real goal or meaning in life so the seek out the most absurd. High depression, suicide rates, drug addiction, you can put it the same category. A society drowning in bureaucratic and bullshit jobs. De-industrialization took away peoples job, it’s their life, they were proud on what they did even when it’s not a 4 master degree job.

Dumb people are easier to control. Ask some youth to read a clock are to some basic math, technology killed braincells I guess. And nobody asked to people what future they want? Maybe a lot of us think we already have too much technology, and not necessary making things better.

hiskorr
Reply to  Rahx360
November 7, 2026 6:09 am

Pish-tush! Show me a “senior software developer” who couldn’t make a bundle as “online influencer”, while his “office-boy” is “stocking shelves” at a $20+/hr “minimum wage”.

sherro01
Reply to  Rahx360
November 7, 2026 12:11 pm

Rahx,
Thank you for talking realism. May it encourage others.
The World will be better when illegal drugs are banished. They have no place in a better future for all. It is past time to rethink alcohol cost:benefit also. And to act.
Geoff S

Reply to  sherro01
November 7, 2026 10:53 pm

People will also be healthier when they stop taking prescription drugs. USA is the most medicated and one of the sickest. There’s those facts again.

November 7, 2026 3:56 am

Good points here.

In the narrow field of independent investigation into the claims of the “climate” movement, AI has capabilities that can be put to effective use. Of course, one must write carefully specified prompts.

Here is an example of something that was made possible using Grok, which would have been prohibitively time-consuming otherwise – the generation of a list of valid URLs to perform automated download of a custom-specified time series of data files from the geostationary satellite GOES East. Then Grok suggested how to quickly produce images from the data.

https://wattsupwiththat.com/2026/10/25/open-thread-213/#comment-4254796

This is just the “tip of the iceberg” for leveraging AI against the misconceptions of climate alarm.

Thank you for listening.

November 7, 2026 9:22 am

AI is a tool capable for good or evil, depending on who wields it. Frankly, I don’t have a lot of trust in american developers and none in Chinese developers.

It will transform the employment picture. The ones keeping a job will be the ones that can use this new tool for greater productivity and production. The ones not able to adapt will have to find employment elsewhere.

The problem I see now is that the LLMs are trained using data from the past few decades which is rife with innaccuracies and all-out lies. That makes AI pretty dumb and not trustworthy to answer questions or direct actions accurately.

If we get AI trained on verifiable data, I look forward to having a robot clean the house and mow the lawn.

Of course I might welcome our new AI overlords while setting up the resistance cells to keep it in check (-;

November 7, 2026 4:06 pm

From the Wall Street journal:

AI’s Transformational Value Remains Elusive for Most Companies

Thirteen percent of CIOs report that their organizations realized significant or transformational value from AI, according to a Gartner survey of 2,002 CIOs and technology executives released this week at Gartner IT Symposium/Xpo in Orlando, Fla.

Thirteen percent isn’t about to set the world on fire.

The AI math isn’t mathing as infrastructure spending forecast to outstrip expected revenue

Gartner estimates AI datacenter operators would need to generate a total of $8.5 trillion in revenue to cover capital spending and financing costs while achieving that return.

Note also that Microsoft is unwinding some of its AI capacity rental agreements with Oracle.

I’m not saying AI isn’t a significant advancement, but to me, the rapid data center build-out may backfire.

Reply to  Paul Hurley
November 7, 2026 10:59 pm

Oracle is a big investor, and it’s outside its business model. You will find that it pays very little interest on the borrowings because of who is backing them

November 7, 2026 10:30 pm

Eric, my bet is that there will be little impact, the big tech guys have plenty of time and cash to lubricate the Dems.

Bernie will be convinced by the others not to be a deterrent for the sake of national security, etc