‘A major risk to the global economy’: BofA warns about the AI boom the day before a midterm vote framed around data-center backlash

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“A sustained correction in the AI trade is a major risk to the global economy,” BofA Global Research’s economists wrote Monday, the day before a midterm vote in which data centers are on the ballot in 10 states. “Investors are increasingly concerned about the sustainability of the AI trade, and the more capex rises, the more risks loom,” they wrote. A slowdown would hit growth directly and through the wealth effect, as stock gains that have propped up spending reverse. They also tie some of the rise in interest rates to the borrowing needed to pay for the buildout. Voters have their own complaints about the buildout. They will decide 41 local data-center ballot measures on Tuesday, from new requirements for developers to outright bans on construction, Axios reported, citing Ballotpedia. All six data-center measures already decided this year, in New Hampshire, Wisconsin, Michigan and California, went against development. The backlash has reached the top of the ticket. In Texas, Gov.…

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