AI data-center stocks slide, renewables rally after Democratic US midterm sweep
Data-center and utility stocks fell after Democrats won control of Congress, as investors anticipated greater scrutiny of artificial intelligence infrastructure and more responsibility for power and water costs. Analysts said the political shift could slow construction and increase expenses, although it is unlikely to halt the data-center buildout.
Data-center operators including Applied Digital and CoreWeave declined sharply in market trading after Democrats won control of Congress. Investors anticipated more hearings, investigations and scrutiny of the artificial-intelligence boom, along with possible pressure on tax incentives and greater responsibility for electricity and water costs. Utilities exposed to data-center growth in Texas, including Constellation Energy and Vistra, also fell.
Analysts said tighter oversight could make AI infrastructure more expensive and reduce the pace of new construction, but they do not expect Congress to meaningfully stop the buildout. Hyperscalers such as Amazon, Microsoft and Google rose as investors speculated that slower construction could increase the value of existing data-center assets and reduce capital spending.