BofA Warns Permitting Delays Pose New Risk to AI Data Center Buildouts
Bank of America's industrials team highlighted continued strong demand for data center infrastructure driven by hyperscalers like Microsoft, Amazon, Google, and Meta. However, the analysts identified permitting delays and community opposition as growing risks that are slowing down project completions despite robust order books. The report reiterated Buy ratings on key suppliers including Eaton (ETN), GE Vernova (GEV), Vertiv (VRT), Trane Technologies (TT), Johnson Controls (JCI), Forgent Power Solutions (FPS), and INNIO (INIO). These firms provide essential electrical, thermal, and power generation equipment for AI data centers. The analysts also addressed concerns around quality issues at Vertiv, stating they are not unique to the company. To mitigate community resistance, companies like CoreWeave have adopted transparency measures such as signing the Ratepayer Protection Pledge, which ensures that infrastructure costs do not impact household electricity bills.
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