Democratic midterm wave hits AI and data center build-out
With Democrats at 253 House seats, markets are pricing delays and political backlash for AI data centers. Morgan Stanley flags 12GW at risk, and CT is debating Democrats' AI stance.
What we know
Morgan Stanley says 12GW of planned US data-center capacity could be delayed by 2030, including 4.9GW in 2028. The House count stands at D 253, R 161, with 21 uncalled. Texas's governor-elect criticized data centers, and a post RT'd by zerohedge says 76% of voters don't want data centers nearby. CT figures such as several accounts on X attacked the Democratic AI and spending agenda, while Noah Smith RT'd an optimistic take on Democrats' post-midterm prospects.
How the story developed
With Democrats at 253 House seats, markets are pricing delays and political backlash for AI data centers. Morgan Stanley flags 12GW at risk, and CT is debating Democrats' AI stance.
Morgan Stanley, Stripe and OKX/ICE are pushing tokenized assets and stablecoin rails, while a judge let stock perps trading continue.
Morgan Stanley is tokenizing equities and Treasurys on DTCC infrastructure, a US judge let stock perps trading continue, and stock-token volume is growing on Robinhood Chain.
Morgan Stanley is reportedly tokenizing US stocks and bonds, and Hong Kong passed OECD crypto tax reporting rules effective 2027.
Morgan Stanley joins JPMorgan, Citi, BofA, Fidelity and Citadel Securities in DTCC's tokenization service, and Revolut completed a round at a $115B valuation.
Morgan Stanley says it was among the first banks to tokenize assets through DTCC's new service.
Falling AI token prices alongside rising GPU rents, tighter neocloud credit, and warnings from Singer, PIMCO and Morgan Stanley feed an 'AI bubble' narrative. Banks are meanwhile lending heavily into AI.
AI and semiconductor stocks are under pressure as hedge funds cut exposure, while yields fall and breadth improves. Equal-weight beat cap-weight by the widest margin since 2009.
Morgan Stanley says hedge funds are underweight AI for the first time since 2023, Friday saw broad equity de-risking, and gold broke below $3,970, while UBS warns of a year-end short squeeze.
Sources
“expand federal healthcare spending while imposing new restrictions on AI... fiscally ruinous”
View post →By the Global Eye 24 desk, with AI assistance. Updated as the story develops. Spot an error? Write to corrections@globaleye24.com.