Does the Democratic midterm victory spell the end of US AI data centre boom?

South China Morning Post · Mia Nurmamat · 2026-11-06 06:00 UTC

Forecasters warn that proposed project freezes in Texas and federal regulatory pushback could stall up to 30 per cent of planned US facilities.

The sweeping midterm election victory by US Democrats has triggered warnings from analysts that an impending regulatory clampdown could derail the nation’s multi-trillion-dollar artificial intelligence data centre buildout.

Wall Street forecasters slashed their projections for Big Tech infrastructure spending hours after the vote, cautioning that a wave of proposed project moratoria and tighter oversight could stall up to 30 per cent of planned US facilities and force developers to downscale their capacity plans.

The pessimism sent shock waves through equities on Thursday US time.

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