The midterm AI backlash just handed the biggest data center companies a surprising win
Source: Business Insider ·
The AI data center backlash could strengthen Amazon, Microsoft, and Google by limiting competition and driving up cloud computing prices.
From the source
Microsoft's data center project in Mount Pleasant, Wisconsin.Joe Timmerman/Wisconsin Watch via Getty ImagesThe midterm backlash against AI data centers could help the biggest cloud providers.Amazon, Microsoft, and Google have existing capacity that smaller rivals are racing to match.Limits on new construction could reduce competition and push up AI computing prices.The backlash against AI data centers delivered a stunning political upset in Tuesday's midterm elections. But the biggest winners may turn out to be the tech giants that have already built many of these Voters across the US sent a clear message Tuesday: They want to slow or stop the construction of new data centers. That could make it much harder for the AI industry to keep up with soaring demand.Goldman warned the election results could lead to restrictions affecting roughly 45% of planned US data center expansion.The biggest shock came in Texas, where Democrat Gina Hinojosa defeated Republican Gov. Greg Abbott. Hinojosa…