A Democratic wave in the US midterm elections could make it harder to expand the infrastructure needed for artificial intelligence. Opposition to data centers was a major campaign issue for numerous Democratic candidates, raising concerns for technology companies investing billions of dollars in AI infrastructure.
Tech investor Dan Ives of Yorkville said Democratic control of Congress, particularly the Senate, could create significant obstacles to passing legislation over the next two years. The election results initially prompted a split in AI-related stocks, despite the prospect of construction restrictions and regulation presenting challenges for the sector as a whole.
Shares in neocloud providers such as CoreWeave fell, while major cloud companies gained. Amazon and Microsoft rose by more than 6% on Wednesday. Alphabet, which had lost ground the previous week, added more than 3%, and Meta gained 1.4%.
Sources: Handelsblatt.