Data center shares fall as investors expect slower AI buildout after Democrats win Congress; Hut 8 drops 23%, IREN 11%, Core Scientific 10%, Applied Digital 7% (Reuters)

Data center shares declined as investors anticipate a slower AI buildout following a sweeping midterm election victory for Democrats, according to Reuters. The downturn included significant drops for several companies: Hut 8 fell 23%, IREN dropped 11%, Core Scientific decreased by 10%, and Applied Digital fell 7%.

The National Business reports that the victory for Democrats follows a predicted backlash against Big Tech and data centers. During the first two years of Donald Trump's second term, the White House supported AI development through limited regulation and expedited data center construction, claiming these actions spurred trillions of dollars in investment.

However, Michael Strobaek, a global chief investment officer, suggests that under Democratic leadership, there may be pushes to scale back tax incentives, introduce early safety regulations, and shift more grid costs onto developers. The National Business also notes that polls show voter frustration with these technologies regarding environmental concerns, spending, and distractions from issues like inflation and high energy prices.

Brief written by urgent.news from Techmeme, The National Business, The National UAE — 3 reports on this story. Machine-written — may contain errors; check the original before relying on it.