[ITmedia News] Democrats take back both houses of Congress in the US midterm elections; IT giants' stock prices rise as there is a real possibility of tighter AI regulations

In the US midterm elections held on November 3 (local time), the Democratic Party won a majority in both houses of Congress. The Republican Party's control of both the White House and Congress will change, and it is expected to have an impact on the IT policies of the Donald Trump administration. In particular, regulations on the construction of AI data centers and increased Congressional oversight of major U.S. IT companies are attracting attention.

According to CNBC, Democrats are planning to use their investigative powers in Congress to increase oversight of AI companies. Democratic Congressman Greg Kasser is calling for the CEOs of AI companies to be brought before Congress to testify under oath. The impact of AI on employment is also expected to be a focus.

The expansion of AI infrastructure is also facing headwinds. In Texas, Democrat James Talarico defeated Republican Ken Paxton to win the U.S. Senate seat. His campaign promises include taxing profits from AI and returning them to the people, tightening regulations on data center electricity and water usage, and abolishing tax breaks for major IT companies. It also requires social media companies to prohibit algorithmic targeting of minors.

According to The Washington Post, at least 38 municipalities have passed referendums banning or restricting data center construction. In the gubernatorial race for Texas, a state with a large number of data centers, Democrat Gina Hinojosa defeated the incumbent Republican governor, calling for a moratorium on approvals for new data center construction. The opposition to AI facilities that consume large amounts of electricity and water appears to be reflected in the election results.

Meanwhile, on the U.S. stock market on the 4th, Amazon's stock price rose 7.4% at one point, while Meta, Alphabet, and Microsoft's stock prices also rose 2% to 6.3%, according to Reuters. This is based on the view that if the construction of new data centers is restricted, major companies with existing facilities will have an advantage and the burden of capital investment will be reduced.

However, even if Democrats control Congress, Republican President Trump has the right to veto the bill (VETO). It is unclear whether comprehensive federal legislation regarding AI will be enacted, and for the time being the main impacts on the IT industry are likely to be Congressional investigations into companies and tightened regulations at the state and local levels.