NXG sees slower AI data center buildout, not cancellations, as regulation tightens
NXG•NXG Nextgen Infrastructure Income Fund said tighter post-election restrictions could slow data center construction and raise costs, but it believes current prices imply cancellations unsupported by the evidence. Analysts largely maintained hyperscaler spending forecasts, with some projects expected to shift from 2028 to 2029.
1. Slower projects, not cancellations
NXG Nextgen Infrastructure Income Fund called the AI infrastructure selloff excessive in its November 2026 market update and said it had reduced exposure to make portfolios more defensive. It identified opportunities in existing infrastructure with contracted or fee-based revenue, noting that pipelines retain contracted fees despite project delays. The fund said growth is more exposed than established revenue.
2. Spending forecasts maintained
The fund said post-election restrictions could slow data center construction and raise costs, while analysts largely maintained hyperscaler spending forecasts after the election. Some projects are expected to shift from 2028 to 2029 rather than be canceled.
