CompaniesUnited States

Data center backlash and heavy debt put AI buildout under pressure

Data centers are being built largely with borrowed money, and local opposition is growing. OpenAI is promising local benefits, and Georgia Power's regulator, now led by Democrats, faces scrutiny over a redacted OpenAI contract.

BalticServers data center
Photo: BalticServers.com, CC BY-SA 3.0, via Wikimedia Commons

Data centers are being financed heavily with debt. That weighed on bonds this year, and the strain is expected to grow.

For the first time in 30 years, Democrats took the majority on the commission that regulates Georgia Power. The utility's contract for an OpenAI data center was fully redacted, which means its contents were blacked out.

In numbers

30 yearsSince Democrats led regulator

OpenAI is trying to win over opponents of data centers by calling them "compute campuses" and promising local benefits. Lo Toney of Plexo Capital said data centers have a PR issue in how they have presented themselves.

Bank of America expects AI stocks to come back in vogue. It also expects the data center buildout to slow after the Democratic sweep. Some analysts say a pullback could shield the wider economy from an AI bubble.

Who is who

  • Lo ToneyPlexo Capital
Where
United States
Published
Section
Companies

This article is not investment advice. It was written by our automated newsroom from published reports and official statements, using only the facts in them, and not read by a person before it was published. Report a mistake

Back to the front page

More news

Illustration: A empty sports betting lounge at night, with rows of dark leather seats facing a wall of glowing blank screens and a single paper betting slip lying on the carpet.CompaniesAirbnb jumps 12% on raised outlook while DraftKings fallsAirbnb shares rose after it lifted its yearly forecast, while DraftKings fell on a weak 2027 profit outlook. Centrus Energy and EPlus also had news that moved their shares.Gigafactory Texas Construction Southwest Corner February 2022CompaniesTesla to end Cybertruck production in Texas by mid-2027Tesla will wind down Cybertruck output at its Texas factory around mid-2027 to make room for the Cybercab. The move follows years of poor sales for the electric pickup.Tesladown −5.19%1 monthIllustration: A long row of empty desks in a bright open-plan office, each with a laptop closed and a chair pushed in, with morning light across the floor.CompaniesCanva restructures 22% of its workforce as AI job impact stays unclearCanva is restructuring 22% of its workforce, and some tech firms are pairing job cuts with exit perks. Evidence on how AI affects jobs remains mixed.Illustration: A single bitcoin coin standing on its edge on a dark wooden desk, lit by warm light from a nearby window.CompaniesStrive posts $474.8 million Q3 income on unrealized bitcoin gainStrive reported $474.8 million in third-quarter net income to common holders, almost all from a paper gain on bitcoin. The company also cited a 63.2% bitcoin yield.Bitcoindown −11.24%1 monthMC 澳門 Macau Cotai 永利皇宮 Wynn Palace shop Balenciaga Clothing Store November 2023 R12SCompaniesBalenciaga names Martine Rose its first female creative director in 109 yearsBritish designer Martine Rose will lead the creative side of Balenciaga, the first woman to do so in the fashion house's 109-year history. The appointment is a notable change for a major luxury brand.Vials (32419676518)CompaniesQuantinuum and Moderna lift revenue outlooks; RenovoRx holds steadyQuantinuum and Moderna raised their revenue outlooks. RenovoRx kept its 2026 revenue guidance at $3.75 million to $4.25 million.