U.S. elections could slow the data center boom. Barron’s names 7 stocks at risk.

Voters in several U.S. states head to the polls on Tuesday for elections and ballot measures that could tighten rules on AI data center construction and limit how much energy companies can earn from those projects, Barron’s reports. Which stocks could be affected?

The Texas governor’s race could matter most to the market. Republican incumbent Greg Abbott faces an unexpectedly strong challenge from Democrat Gina Hinojosa, who has made a pledge to “end costly data center madness” one of her three priorities. Hinojosa pulled ahead in a New York Times/Siena poll released Sunday, though her lead was within the margin of error. Abbott had led most previous polls.

In August, Abbott imposed a temporary moratorium on approvals for new data centers, saying the state needed to audit operators. Hinojosa says the pause does not go far enough and is calling for a halt to all data center construction until lawmakers pass tougher rules, including repealing state tax breaks.

Tighter rules in Texas could curb revenue growth at Sempra, which is investing heavily in the power grid in West Texas, as well as at utilities CenterPoint Energy and American Electric Power, which are benefiting from rising electricity demand in the region, and Fermi, which is building large data center campuses. Oracle, which is counting on power for its data centers in Texas and Arizona, could also come under pressure, Barron’s writes.

Two other races to watch are for seats on utility commissions in Georgia and Arizona. The commissions approve rates and decide whether utilities can pass their investment costs on to customers. In Georgia, Democrats could take control of the commission after winning two seats last year, potentially limiting Southern Co.’s earnings growth from serving data centers in the state. Southern says data centers lower rates for other customers because large tech companies pay more for electricity. The utility has pledged to hold rates steady through 2028. Morningstar analysts warned last week of mounting regulatory pressure in Georgia, which accounts for about two-thirds of Southern’s earnings and planned investment.

In Arizona, a Democratic victory in a similar commission race could curb growth at Pinnacle West, which is also drawing strong interest from data center operators, Barron’s reports.

Data centers are on the ballot in 10 states, with 41 measures nationwide giving residents a say in whether the facilities can be built in their communities. Ohio has the most, with 21.

The industry has more protection at the federal level. President Trump supports AI development and is likely to resist efforts to curb its growth, Barron's writes. Six votes on data centers earlier this year in New Hampshire, Wisconsin, California, and Michigan went against the industry. In all six, voters backed new restrictions on data center construction.