Egan-Jones Analyzes Political Support for AI Buildout Despite Public Opposition
Egan-Jones has released an analysis suggesting that the mainstream of both U.S. political parties is likely to continue supporting artificial intelligence infrastructure development, despite public opposition to local data centers. The firm notes that major hyperscalers plan over $700 billion in capital spending this year and draws a comparison with pharmaceutical companies, which remain politically supported even amid widespread unpopularity. Polls show 71% of Americans oppose having an AI data center locally, compared to 53% for nuclear plants. The analysis highlights the pro-AI super PAC network Leading the Future, which has raised $140 million for midterms and is influencing political outcomes. A recent House vote passed a bill addressing power costs without limiting new builds. Egan-Jones anticipates populist factions may push against AI expansion more than mainstream parties. The firm views this shift as positive for utilities but slightly negative for hyperscalers due to higher connection fees and delays, with Oracle and lenders facing the most risk. Smaller developers are particularly vulnerable, with $68 billion in projects delayed or canceled last quarter.
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Topics: artificial intelligence data centers investment analysis political risk