[U.S. Midterms: Day of Reckoning] Democrats Could Step Up AI Regulation Legislation if They Take Congress

Pressure mounts for companies to shoulder power grid costs
AI regulation and Big Tech investigations expected to intensify
President Trump signals he will use his veto power

With forecasts emerging that Democrats could regain control of both chambers of Congress in the U.S. midterm elections, analysts say key policies pursued by U.S. President Donald Trump, including promoting the artificial intelligence (AI) industry and easing regulations on data center construction, could face obstacles.

A robot holds a sign criticizing Texas state Rep. James Talarico, the Democratic candidate for the U.S. Senate, at a midterm election polling site in Dallas, Texas, on the 3rd (local time). Reuters-Yonhap News Agency

Fortune and other U.S. media outlets noted on November 3 (local time) that federal AI regulation could move forward in earnest if Democrats take control of both the House and Senate in the midterms. A bipartisan AI regulation bill, the Frontier Act, is currently under discussion in Congress, but a Democratic takeover could also lend momentum to other regulatory bills.

Congressional investigations into big tech companies could also expand. Fortune forecast that investigations into the safety and security systems of major AI companies would intensify if Democrats regain a majority in the Senate. Senator Elizabeth Warren, a Democrat, has already asked Anthropic CEO Dario Amodei to explain risk factors listed in the AI company's initial public offering (IPO) filing.

The biggest question is how the election results will affect regulations on data center construction. CNBC noted that a proposal requiring data center developers to shoulder a larger share of the cost of expanding the power grid could be revived. This could drive up data center construction costs. The U.S. online outlet Axios also reported that congressional investigations into the Trump Administration's energy policies and related investments could expand if Democrats regain control of either the House or the Senate.

In the United States, investment in data centers has surged alongside the growth of the AI industry, fueling ongoing debate over the cost of expanding the power grid and the burden of electricity bills. In September, the U.S. House of Representatives passed the Ratepayer Protection Act by 417 votes to 3. The bill would require state governments to consider making large data centers pay for the cost of expanding the power grid. However, the bill failed to secure the 60 votes needed to advance in the Senate, receiving 57 votes in favor and 43 against. At the time, Democrats argued that a bill that did not require companies to shoulder the costs would provide only limited consumer protection.

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Meanwhile, local referendums to restrict data center construction itself have also been held one after another. According to Fortune, at least 41 data center-related referendum measures were put to a vote across the United States on November 3, the day of the midterm elections. In Piqua, Ohio, voters also held a recall vote targeting the mayor and two city commissioners who had backed a $1 billion data center project proposed by Meta, the operator of Facebook.

However, some analysts say Democrats would not be able to move immediately to regulate data centers even if they take control of Congress. Global investment bank Goldman Sachs said a Democratic takeover could lead to cuts in related tax incentives, but that a nationwide halt to construction was unlikely. The bank explained that although data centers had become an election issue in some areas, they ranked low among voters' policy priorities.

President Trump has also signaled that he would use his veto, mindful of the possibility that Democrats could take control of Congress. In a November 2 interview on the New York Post's podcast "Pod Force One," he said that if Democrats won majorities in both the House and Senate, "I will be 'Mr. Veto,'" adding, "If they send me bills, I will veto them." Overriding a presidential veto requires a two-thirds majority in both the House and Senate, making bipartisan agreement essential.

This content was produced with the assistance of AI translation services.