Meta Warns Midterm Results Complicate US Data Center Expansion

Meta Platforms President Dina Powell McCormick warned that building new data centers in the United States will become more challenging following widespread Democratic victories in the midterm elections. Speaking at the WSJ Tech conference, Powell McCormick noted that opposition to these facilities was a prominent theme in campaign advertisements and exit polls.

Governors-elect in Ohio and Texas have already called for conditional freezes on new construction. Powell McCormick suggested some officials might remain open to negotiations to prevent the loss of jobs and investments. Meta is currently investing up to 145 billion dollars in capital expenditures this year to support its AI agents, Muse, with active projects in Louisiana, Ohio, and Texas.

To mitigate domestic political risks, Meta and other hyperscalers are considering expanding data center construction outside the United States. This strategic shift comes as Meta seeks to raise up to 97.5 billion dollars through new stock offerings after reporting its first negative free cash flow since 2012.