Could Democrats BURST the AI bubble? Big Tech’s $730B AI infrastructure spend for 2026 now faces a new hurdle: a Democratic Congress. Dems also flipped key governorships, many on promises to STOP data center construction. In the states, the new Dem govs want to stop/pause the buildout: 1. In Texas, Gina Hinojosa wants an immediate pause and an end to data center tax breaks. 2. In Ohio, Amy Acton wants a pause unless developers meet certain conditions. 3. In Georgia, Keisha Lance Bottoms wants to pause new construction statewide. 4. In Michigan, Jocelyn Benson wants a pause until new rules are in place. In Congress, Dems already have a national data center moratorium bill. Rep. Yassamin Ansari says a pause on advanced AI and a ban on artificial superintelligence must be “top of the Democratic agenda on day 1.” Local voters agreed too. Data center restrictions won 38 of 39 completed ballot counts. And this isn’t just a Dem issue. Republican Gov. Abbott had already paused data center permits in Texas before he lost. Why does this matter so much? Because the AI boom runs on US data centers. 15 of the world’s 20 largest data center markets are in the US. The US also holds ~55% of global AI computing capacity, per Morgan Stanley. And it’s still growing. Goldman expects US capacity to rise from 64 GW in 2026 to 90 GW by 2027. But Goldman also says ~45% of planned US data center capacity sits in states weighing tougher rules. Texas alone is ~25%. So, can Democrats actually burst the AI bubble? At the state level, they can SLOW it, but not alone. 1. In Texas, Hinojosa can order permit pauses but can’t ban construction. State regulators are Abbott appointees she can’t fire without the Senate, and ending tax breaks needs its votes. 2. In Ohio, Acton picks utility regulators. But Reps control both Ohio House and Senate, and a moratorium needs their votes. 3. In Georgia, Bottoms hasn’t said if a pause can be done by executive order. Reps kept the state Senate, and the House is still too close to call. 4. In Michigan, Benson has the clearest path, with Dems controlling both chambers. But Dems passed the tax breaks she wants to end. In short, NO governor can simply ban data centers. A nationwide ban faces even bigger hurdles. In Congress, even top House Democrat Frank Pallone opposes blanket freezes. Neither the moratorium nor the superintelligence bill is law. Any federal ban would also face President Trump’s VETO. Dems lack the 2/3 majority to override it. Goldman also expects state restrictions to be temporary. Still, politics isn’t AI’s only problem. Morgan Stanley projects a 32 GW US power shortfall from 2026 to 2028. That means even approved projects may lack electricity. Then there’s the money. Investors want proof that all this spending will pay off. Chip stocks were already about 29% below their June highs. And if US projects get blocked, analysts warn they could move OVERSEAS. The longer this takes, the uglier the math gets.