Trump's midterm drubbing demonstrates the power of data-centre opponents
APLD•Democrats who campaigned partly on moratoriums on data-centre development won gubernatorial races in Texas and Georgia, giving opponents more political influence. Investors said the results could bring tougher regulation; US data-centre operator shares fell in premarket trading, while several Asian chip and AI stocks also declined.
1. Democrats win key races
Democrats campaigning partly on data-centre moratoriums won gubernatorial races in Texas and Georgia. Gina Hinojosa defeated Greg Abbott in Texas, ending three decades of Republican control, and Keisha Lance Bottoms won in Georgia, ending more than two decades of Republican control.
2. Investors weigh regulation
Investors said the victories could usher in tougher regulation and challenge the data-centre boom, as opponents argue the projects raise utility bills and bring insufficient jobs or tax revenue to justify state incentives. Shares in US operators Applied Digital, Terawulf, Core Scientific and Iren fell between 0.16% and 2.9% in premarket trading; Nebius rose nearly 2%, while CoreWeave dipped 0.32%.
3. AI market concerns
Chip and AI firms including TSMC, Samsung Electronics, SK Hynix and Kioxia fell in Asia on Wednesday, along with bond yields. Analysts cautioned that slower US data-centre construction would not necessarily mean weaker demand for AI or computing power. Anthropic is preparing to market shares to prospective investors next week; a filing showed third-quarter revenue rose 47% from the previous quarter to $16.96 billion, while its net loss narrowed.
