Nasdaq plunges into correction threaten data centers and AI (nypost.com)

The Nasdaq index fell 5.1% on Thursday, marking the beginning of a correction that signals potential troubles for data centers and AI companies as political shifts brought concerns over project approvals and revenue impacts. Following the recent Democratic victories in midterms, which included voter backlash against new data centers in over 90% of related referendums, tech firms like OpenAI are adjusting strategies. Companies such as CoreWeave and Iren witnessed significant stock drops, reflecting investor fear over a slower data center buildout. In response to these challenges, OpenAI introduced its "National Community Compact," pledging to enhance community relations and minimize environmental impacts from data centers. This includes promises to lower energy consumption during peak times, disclose construction plans, and prioritize local hiring. Analysts predict that the political landscape could delay about 30% of planned data center capacity by 2028, pushing hyperscalers like Meta to consider building facilities outside the U.S. as they navigate this contentious environment.