The U.S. midterms could widen the AI divide: tighter data center rules may reward tech giants with capacity in hand and squeeze debt-funded companies trying to catch up.
Democratic victories in key gubernatorial races raised the prospect of tougher scrutiny for data center projects, adding to investor concerns about how quickly new capacity can be built and financed.
In Texas, Democratic governor-elect Gina Hinojosa has proposed a statewide moratorium on new data center permits, although projects already under construction would reportedly be exempt.
As the markets digested the results on Wednesday, Microsoft and Amazon each surged more than 6%, while AI infrastructure provider CoreWeave plunged around 10%. Chipmakers Micron and Nvidia fell 7% and 3.17%, respectively.
Differences in borrowing costs are playing a key role in the split, James Sullivan, managing director and co-head of global fundamental research at JPMorgan, told CNBC's "Squawk Box Asia" on Thursday.