Pegatron Chairman Says US AI Buildout Will Continue
Tung Tzu-hsien argues AI is central to US national strength, so a Democratic midterm sweep is unlikely to halt development.
Updated on Nov. 4, 2026 in Artificial Intelligence
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Pegatron chairman Tung Tzu-hsien said AI development in the US would not be halted by the Democratic Party's capture of the US Senate and Congress in the November 2026 midterm elections. Tung made the remarks at a Taipei event on November 4, dismissing market worries that under-construction US AI data centers could be affected.
Why it matters
Market concern that a Democratic midterm sweep could slow US AI data center construction has prompted industry pushback, with Tung arguing AI is central to US national strength. The argument frames local opposition as unlikely to fully hamper AI buildout, a view that will be tested as data center siting and power decisions play out.
The cost figures come from Tung's remarks rather than an independent analysis, citing Texas natural gas power at little more than NT$1 per kilowatt-hour and more than half cheaper than imported LNG. The extraction does not say whether data center operators in the state have adopted this power source at scale.
The players
Pegatron
Taiwan-based electronics manufacturer that builds consumer and networking hardware for global technology brands.
Tung Tzu-hsien
Chairman of Pegatron, who argued that AI development in the US would continue regardless of the midterm outcome.
The details
Pegatron is a Taiwan-based electronics manufacturer, and its chairman framed data center power as a function of cheap local energy. Data centers are large facilities of servers that run AI models, and their power supply is a major cost driver. Tung argued that the US has abundant natural gas, with massive pipelines in Texas and the country as the biggest oil and gas producer, and that local practices could be negotiated according to public opinion. He also suggested short sellers were using post-election pessimism to push down market prices.
Timeline
November 3, 2026: Democratic Party captured the US Senate and Congress in the midterm elections.
November 4, 2026: Tung spoke at a Taipei event dismissing AI worries.
The Tech Race
The post-Biden expansion of US AI infrastructure is now being weighed against a new congressional majority that could shape data center permitting and energy policy. Tung's position places the US AI buildout as a national competitiveness priority that industry expects to continue regardless of the political change.
For most people, the immediate effect is uncertain, since the extraction gives no timeline for changes to data center permitting or power costs. Users of AI services would feel any slowdown only indirectly, through the pace at which new capacity comes online, and no specific date or dollar effect is given.
The takeaway
Watch whether the new Congress moves on data center permitting or power policy in its first session, which would test Tung's claim that AI development will continue unhindered. Track whether local opposition to specific data center projects grows into a broader obstacle to the buildout.
Further reading
Explore more on Artificial Intelligence developments shaping US data center growth and policy.
Source note: This article includes information reported by Liberty Times Net.
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