Could the US midterms put a pin in the AI bubble?
Summary
U.S. technology shares fell after Democrats gained control of both houses of Congress in the midterm elections. Investors are concerned that lawmakers may restrict data center construction and regulate AI, adding to existing doubts about whether large investments in the sector will deliver expected returns.Key Facts
- The Nasdaq saw the sharpest U.S. market declines on Thursday, affecting major technology companies.
- The article says Democrats won control of both houses of Congress in the midterm elections.
- Some Democratic candidates campaigned against data centers, citing their water and electricity use, noise, land use and effects on local communities.
- A Gallup poll published in May found that 71% of Americans would oppose a data center in their community.
- Goldman Sachs research cited in the article projects that AI investment will reach $1 trillion in 2026.
- Concerns about AI safety and the returns on AI-related investment had been growing before the election.
- Texas governor-elect Gina Hinojosa campaigned against data centers and pledged a pause on new construction.
- Elon Musk spent nearly $450 million to support Republican campaigns in the midterms, according to the article.
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