Data center stocks tumble on fears Democratic sweep could curb expansion
XLK•XLK•XLK•XLK•U.S. data center stocks and related power companies fell after Democrats swept the midterm elections. Goldman Sachs said victories in Texas and Georgia could put about 45% of planned U.S. data-center capacity at risk.
Core Scientific fell 10.8%, Iren slid 9.5%, Applied Digital dropped 4%, Hut 8 fell 15.5% and Cipher Digital declined 18%. Power equipment maker GE Vernova and power generators Constellation Energy and Vistra fell between 7.1% and 12%.
Goldman Sachs warned that Democratic victories in Texas and Georgia could put about 45% of planned U.S. data-center capacity at risk from potential construction moratoria, tighter regulations and reduced tax incentives. Texas alone accounts for about 25% of the capacity. The Global X Data Center & Digital Infrastructure ETF was up more than 20% year to date, including the session’s moves.
