Shares of some data-center builders and operators fell in morning trading Wednesday, after midterm election results raised the prospect of new restrictions on development that could slow the AI infrastructure buildout.
Shares of Core Scientific, a digital infrastructure and data-center company that provides high-density computing power and hosting services, fell 9.6% after the opening bell, to $12.88.
Shares of CoreWeave, IREN and Nebius Group all declined as well.
Glenmede analyst Jason Pride said the rapid AI buildout was already contending with headwinds before Democrats took control of the Senate and House in midterm elections.
"Democrats captured the governorships of several states central to data-center development, including Texas, Ohio and Georgia, running on platforms critical of further expansion," he said in a research note. "At the federal level, there may also be efforts to scale back or eliminate the 100% expensing of capital expenditures tied to data centers."
Fears about data centers pushing up power prices, consuming local water sources and capitalizing on tax exemptions have driven a nationwide backlash.
A poll of more than 79,000 registered voters found that 56% said data centers were either a crucial or major factor in their picks for Congress, according to The Wall Street Journal.
Voters across the Midwest and the South helped deliver a blow to Big Tech with towns in Ohio, Kansas and Florida passing bans on data center construction.
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