Markets6 Nov, 13:30 UTCUnited States

Data-center backlash puts pressure on AI-linked stocks and utilities

A public backlash against data centers is weighing on stocks tied to the AI boom. Utilities say they can serve the new demand without raising costs for households.

Scroll to read

Photo: Carl Lender from Sunrise, USA, CC BY 2.0, via Wikimedia Commons

Markets · 6 Nov, 13:30 UTC

Voters across the United States have turned against data centers, the large buildings that house computing equipment for artificial intelligence. They have also challenged the wealthy tech founders behind the projects. Democrats who won recent races now have to deal with that result.

Markets

They also have to keep US AI labs competitive around the world, according to Dave Lee, a Bloomberg Opinion columnist. The backlash has been linked to a sell-off in AI-related shares. One power-equipment maker, Bloom Energy, was among the biggest decliners in the S&P 500 amid fears of data-center delays.

S&P 500, the past month

7,416.33down −4.94%

Markets

Duke Energy, a power utility, says it can meet rising data center demand without shifting costs to households. Brian Savoy, its chief financial officer, said large tech customers known as hyperscalers pay their share. The company expects growth to continue and says it is balancing big grid investments with affordability.

S&P 5007,416.33down −4.94%over 1 month

Prices can be delayed by 15 minutes or more. Past moves say nothing about future ones.

Also in this story

Nasdaq Compositedown −10.39%1 month

Who is who

Brian SavoyChief financial officer, Duke Energy
Dave LeeBloomberg Opinion columnist

Background

Data centers need large amounts of electricity, so their growth affects power companies and the grid.

Where: United States
Published: 6 Nov, 13:30 UTC
Section: Markets
Markets: S&P 500, Nasdaq Composite

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
Photo: Carl Lender from Sunrise, USA, CC BY 2.0, via Wikimedia Commons

Back to the front page

More news

Markets6 Nov, 12:40 UTCTech stocks slide worldwide as AI worries spread; US futures steadyA sharp drop in AI-linked shares moved from Wall Street to Asia and Europe after worries about tighter rules on data centers. US futures rose on Friday as some investors bought the dip.

Nasdaq Compositedown −10.39%1 month

Markets6 Nov, 02:30 UTCSeoul stocks plunge 8%, halting trading, as AI fears hit chipmakersSouth Korea's Kospi index fell more than 8% on Friday and trading paused for 20 minutes. Fears that a Democratic win in the US midterms could slow data center building hit chip stocks.

Kospidown −27.11%1 month

Markets6 Nov, 11:30 UTCTech stocks fall worldwide as AI spending fears follow U.S. midtermsA tech sell-off that began on Wall Street spread to Asia and Europe, erasing about $2 trillion. Investors fear the shift in control of Congress could slow AI growth.

Crypto6 Nov, 10:30 UTCBitcoin and Ether ETFs lose $530 million in a day as Bitcoin dips under $76,000US funds that hold Bitcoin and Ether saw about $530 million leave in one day, reversing the prior session's inflows. Bitcoin fell below $76,000 and Ether dropped 8.5% to $2,220.

Bitcoindown −11.37%1 month

Munch - Workers on the Building Site. Draft for a Decoration of Oslo City Hall, 1931–1933, MM.M.00977

Economy6 Nov, 14:30 UTC risingUS employers add 165,000 jobs in October as unemployment dips to 4.1%The US economy created 165,000 jobs in October, and the unemployment rate edged down to 4.1%. Steady hiring supports household incomes and the broader economy.

Solomon Sea (oil tanker), in the Solent, England

Energy6 Nov, 13:30 UTC risingOil swings as traders weigh chances of easing in the Iran warOil prices moved sharply as traders judged whether the Iran war could ease. Higher fuel costs are already pushing airlines to raise forecasts, which can feed into ticket prices and other costs.WTI crudeup +2.49%1 month