US Midterm Elections Deliver Blow to AI Expansion: Will Developing Countries Bear the Costs?
The latest results of the US midterm elections reflect growing public resistance to artificial intelligence (AI) development and the expansion of data centres across the country. The Republican Party of US President Donald Trump, which has received support from major AI companies, suffered significant defeats. AI companies also faced a sharp decline in their stock market values. These developments have raised concerns that the environmental, financial and security costs of AI expansion could increasingly be shifted to developing countries.
The election results highlighted growing public opposition to AI expansion in the United States. A public opinion poll conducted in September found that 70 per cent of Democrats and 57 per cent of Republicans supported restricting the construction of new data centres. Voters rejected data centre development projects in 41 ballot measures. Meanwhile, Democratic candidates who supported restrictions defeated their Republican rivals in several key electoral districts.
Public concerns include rising electricity costs, excessive water consumption, pressure on power supply systems, environmental damage and limited job creation. James Mercer of Metro Colo Advisory said voters fear that they will ultimately have to bear the costs of facilities that consume as much electricity as small towns.
As a result, Nvidia lost $450 billion in market value in a single trading session on Thursday. Despite a recovery on Friday, CoreWeave shares remained down 16 per cent over five trading days. Meta’s shares also fell by nearly 4 per cent. Alex Turner, a former researcher at Google DeepMind, told Al Jazeera that political changes have increased the likelihood of effective regulatory measures.
Environmental Costs of AI Are Being Shifted Abroad
On September 22, 2026, the Los Angeles Times reported that 45 projects worth approximately $68 billion in the United States had been suspended or delayed between April and June. Australian AI investment firm HMC Capital has shifted its focus away from the US market. Its subsidiary, Digico, sold a data centre in Chicago for $750 million and moved to sell two stalled projects in Los Angeles.
Meanwhile, Reuters reported on November 5 that new restrictions were being introduced in the United States and Europe. On November 7, protests against a Microsoft project in Amsterdam highlighted concerns over electricity and water consumption. Demonstrators warned that foreign-owned data centres could put additional pressure on power supply systems, increase electricity bills and intensify competition for electricity and water resources.
A study published in the journal PLOS Water in 2026 identified excessive water consumption, rising utility costs and reduced flexibility in supply systems during periods of crisis as major concerns associated with AI data centres.
These facilities also create environmental problems. Diesel-powered generators, fossil fuel-based electricity and construction activities contribute to pollution, carbon emissions, noise and land degradation. Discarded servers, batteries and circuit boards also generate hazardous electronic waste.
Financial Risks and National Security
The research organisation Brookings has identified espionage, data theft, cyberattacks and disruptions to essential services as potential risks associated with foreign-owned data centres. In March 2026, following drone attacks, the organisation documented damage to Amazon Web Services facilities in Bahrain and the wider Middle East.
The United Nations Conference on Trade and Development (UNCTAD) has also highlighted the risks of market monopolisation and foreign control over strategic digital assets. Furthermore, rapid technological changes could make data centres obsolete before investors recover their costs. The International Energy Agency (IEA) has warned that excessive investment could leave parts of the electricity infrastructure as stranded assets.
Could Bangladesh Bear These Costs?
To attract foreign investment, the government may offer subsidised land, tax exemptions, electricity connections and guaranteed returns. However, foreign companies may retain control over the servers, software and AI technologies.
If these projects fail, taxpayers and electricity consumers could ultimately bear the burden through debt, environmental liabilities and costly infrastructure. The Bipartisan Policy Center has warned that the costs of stranded infrastructure could be transferred to electricity consumers.
Bangladesh must ensure that such investments generate long-term employment, technology transfer and opportunities for skills development. Otherwise, the country may end up providing only land, electricity and water while foreign companies retain control over strategic digital capabilities.
Sources: Al Jazeera, WDC, IEA, Bipartisan Policy Center and CBS.
