Barclays warns that AI infrastructure expansion could put related transactions at political risk

On August 26, Barclays strategy team said that the rapidly expanding AI infrastructure is triggering a backlash from voters from both parties in the United States, which may bring political risks to the current hot AI transactions. Barclays said,"Data center construction is turning AI from an abstract technology story to a specific cost-of-living issue." Even voters with limited access to AI will be affected by higher electricity bills, water pressure, and the construction of community industrial facilities. Evercore ISI and BCA Research also warned that the construction boom of power-consuming data centers is becoming a sensitive issue in the midterm elections, with voters increasingly dissatisfied with rising electricity bills. Barclays believes that regardless of the outcome of the midterm elections, AI trading lacks a new upward catalyst and reminds investors not to assume that "rapid AI application growth and a loose political environment can coexist for the long term." The bank's AI data center index includes more than 40 companies, including UltraMicro Computer, AristaNetworks and Microsoft, and related stocks may face policy pressure.