Data center restrictions raise concerns over AI buildout pace, JECohen says
QQQ•JECohen said election results signaled voter support for data center construction restrictions, while annualized data center construction spending reached $96 billion, excluding hardware.
1. Construction faces restrictions
Voters broadly backed restrictions across 41 data center ballot measures in 10 states, with only one exception. Annualized data center construction spending reached $96 billion, excluding hardware, compared with roughly $49 billion for all other office construction.
2. AI buildout outlook
Semiconductor makers and newly public cloud providers had sharper post-election declines than large hyperscalers funding the AI buildout. Long-term AI adoption hinges on productivity gains and economic benefits, while the durability of construction restrictions remains uncertain.
