Data center backlash and AI investment shifts shape US business landscape

This shift in public sentiment suggests that opposition to data centers could become a significant issue in the 2028 US presidential election, forcing both parties to address the concerns surrounding electricity prices and resource consumption.

The concerns surrounding data center expansion are prompting strategic shifts within the tech industry. While some analysts believe that slowing data center growth could lead to industry consolidation and reduced costs for major tech companies, others are relocating investments. SoftBank is reportedly reassessing its US outlook and exploring opportunities elsewhere. Google recently announced a $15 billion investment in Malaysia over the next two years to expand its data center and cloud computing operations.

DAVID SOLOMON, Chairman and CEO of Goldman Sachs, emphasized the importance of responsible data center development, stating, “We have to figure out how to do it the right way, in the right places, with the right protections. If we really prevented that, we’d look back 10, 20 years from now, and not like that as a strategic decision for the U.S.”

Despite the challenges facing data center construction, Anthropic is proceeding with its initial public offering (IPO). The company anticipates launching its roadshow as early as November 10th, with a potential Nasdaq debut during the week of the 16th.

Analysts note that while investment in AI infrastructure remains strong, the focus is now on the return on investment, rather than simply expanding compute capacity. Anthropic’s upcoming revenue performance will be closely watched to assess whether its growth has stabilized.

MARTIN SCHULZ, Head of International Equity Group at Federated Hermes, believes Anthropic’s IPO could serve as a “clearing event” for the entire AI industry, influencing valuations and testing investor confidence in AI infrastructure investments.