Forget the House and the Senate, the economy may hinge on state and local races in the midterm elections
Source: Fortune ·
"For the direction of the U.S. economy, the composition and direction of governance at the state level may matter more than whether the Democrats 'win' the House or the Senate."
From the source
Data centers have emerged as a national issue during this midterm election cycle, and candidates for the House and Senate have seized on it in their campaigns. But state and local officials actually have more sway over data center construction and energy infrastructure, so the winners of lower-profile races may hold the economy’s future in their hands. Hyperscalers have been spending hundreds of billions of dollars a year, with forecasts for 2027 topping $1 trillion. JPMorgan has estimated AI-related investment was responsible for about one-fifth of GDP growth over the past year. Analysts at ING believe AI will account for a third of growth in 2026. With Election Day just over a week away and early voting already in full swing in many states, expectations for big Democratic gains could weigh on the stock market, which has sold off in recent days on fears the AI boom will go bust. If there is a further stock slump, it will be because a “blue wave” at the state and local levels will…