News Summary

• Data centers have emerged as a national issue during this midterm election cycle.
• But state and local officials have more sway over data center construction and energy infrastructure.
• Hyperscalers have been spending hundreds of billions of dollars a year, with forecasts for 2027 topping $1 trillion.
• If there is a further stock slump, it will be because a "blue wave" will usher in lawmakers opposed to data centers, analysts say.
• But any slowdown in spending may actually be beneficial for the AI boom, according to Daniel Skelly, a portfolio manager at Morgan Stanley Wealth Management.