US voters could move AI’s next piece

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Hello reader,

This week’s US midterm elections could determine how easily American AI companies can keep expanding in their home turf, and whether some of their spending could head to regions such as Southeast Asia.

Data centers have become a flashpoint over their electricity bills, water use, and impact on local communities. Voters in 10 US states will consider measures that could delay construction, ban facilities, or add requirements for operators.

The pressure isn’t limited to one political party. An analysis from The Information found that in five gubernatorial races, both Democratic and Republican candidates favor pausing new data center projects. These include Texas and Ohio, two of the biggest data center markets in the US.

Much of the debate comes down to who should pay for the additional power infrastructure these facilities need. Some candidates want developers to foot the bill rather than passing the costs on to households, while others are proposing to remove tax breaks and impose stricter environmental requirements on the facilities.

If building data centers in the US gets too complicated, could Southeast Asia pick up some of that demand?

That depends on whether its markets could get projects moved from MOUs to the ground. As we’ve reported previously, energy constraints and water shortages remain huge bottlenecks in parts of the region, and some data center projects haven’t left the planning stage.

The US elections will test public appetite for the AI infrastructure buildout, and depending on the results, it could give data center operators a stronger case for building abroad. But Southeast Asia should be careful what it wishes for.

Glenn Kaonang, journalist

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WHAT ELSE WE’RE THINKING

1️⃣ Apple turns to Alibaba to close its AI gap in China

Alibaba’s Qwen is heading into selected Apple Intelligence features in China. Developer testing starts November 4, with a public release planned for December.

The timing matters for Apple, as it is competing against Chinese rivals such as Huawei, which have moved faster with rolling out AI features. Apple Intelligence has been largely absent from China because of regulatory hurdles.

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AN EXECUTIVE VIEW ON AI

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