32 publishers · first seen Mon, 02 Nov 2026 09:55 UTC · updated Thu, 05 Nov 2026 14:52 UTC
Following the Democrats' victory in the US midterm elections, concerns about potential hurdles to the AI industry's rapid expansion have led to a decline in AI and data center-linked stocks. The political uncertainty, coupled with mounting public opposition to new data center facilities, could result in around 30% of expected US data center capacity additions in 2028 being at risk. Despite the spending of at least $720 billion on AI infrastructure by major tech companies this year, investors are increasingly questioning whether the enormous capital spending will generate sufficient returns. The AI industry is now scrambling to repackage the $10 trillion infrastructure buildout to appease a hostile electorate that overwhelmingly voted to restrict data center construction in ballot measures across the country.
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