US data-center stocks tumble, clean-energy shares rally after Democratic midterm sweep
U.S. data-center stocks declined after Democrats won control of Congress, as investors anticipated greater scrutiny of artificial intelligence projects and their power and water demands. Cipher Digital, CoreWeave and Applied Digital fell, while Amazon, Microsoft and Google rose on expectations that slower construction could increase the value of existing capacity.
Data-center stocks sold off after Democrats took control of Congress, with investors anticipating congressional scrutiny of AI infrastructure and the electricity and water needed to operate new facilities. Cipher Digital fell 21%, CoreWeave dropped 9.5% and Applied Digital declined 8.8%. Power companies with exposure to Texas data-center projects also recorded losses.
Amazon and Microsoft each gained 6%, while Google rose 4.6%, as investors considered whether tighter oversight could slow the pace of data-center construction and make existing facilities more valuable. Renewable-energy stocks rallied on expectations of stronger federal clean-energy incentives under a Democratic-led Congress.