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Reda Farran Verified account @Reda_Farran · 2d

America’s AI boom has hit a political roadblock.

Newly elected state leaders are promising to pause or restrict data center construction, putting roughly 40% of planned US capacity at risk.

Meanwhile, 46 local ballot measures could further slow development, including 17 outright bans.

That’s bad news for an industry racing to build computing power.

Bloomberg Intelligence reckons the backlash could shave 5% to 7% off the $1.4 trillion expected to be spent on AI infrastructure in 2027, with as much as 10 gigawatts of capacity potentially delayed.

For investors, though, the implications go beyond slower spending.

If building new data centers becomes harder, existing facilities – particularly those with secured power connections and permits – could become significantly more valuable. Scarcity, after all, tends to boost pricing power.

The flip side is that developers relying on rapid capacity expansion to drive revenue growth could struggle.

Those borrowing heavily against future projects face an even bigger headache: delays could leave them without the cash flow needed to service their debts.

Meanwhile, electricity is becoming a political flashpoint.

Voters increasingly oppose data centers pushing up household energy bills, and some policymakers want operators to supply their own power.

That could accelerate demand for on-site generation, benefiting suppliers of natural gas generators and fuel cells.

The latter may have an edge: they’re cleaner and can often be deployed faster, making them attractive where emissions rules and grid delays complicate construction.

Ultimately, one thing’s for sure: the blue wave sweeping Washington is set to reshape the AI trade’s winners and losers.

#AI #DataCenters

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Reda Farran Verified account @Reda_Farran · 3d

Big Tech had a big day on Wednesday, but not everyone joined the party.

Apple, Microsoft, Amazon, Alphabet, and Meta collectively added over $800 billion in market value following the US midterms. Nvidia and Tesla, meanwhile, lost billions. So what gives?

Well, the election results could put the brakes on America's AI spending spree.

Democrats now govern the five biggest states for data center construction, and they're not exactly rolling out the welcome mat.

In fact, Goldman Sachs reckons restrictions could affect 45% of planned data center expansion.

That might sound like bad news for Big Tech. But investors could see a silver lining.

After all, hyperscalers like Microsoft, Amazon, and Alphabet have been pouring eye-watering sums into AI infrastructure, raising concerns about whether those investments will ever pay off.

Slower construction could ease spending pressures, protect cash flows, and reduce the risk of building expensive facilities that quickly become obsolete.

For Nvidia, though, it's a different story. Fewer data centers could mean fewer orders for its lucrative AI chips.

And Tesla? Its decline might have less to do with AI infrastructure and more with Elon Musk's close ties to Republicans, who suffered a bruising election defeat.

#Midterms2026 $NVDA $TSLA $META $GOOGL $AMZN $MSFT $AAPL

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