US midterms could increase risk of state-level data centre curbs, says JPMorgan's Jahangir Aziz

What happened

JPMorgan economist Jahangir Aziz said US midterm elections could increase the risk of state-level restrictions on data centre construction if Democrats win more governorships. He said a nationwide pause on new projects is unlikely, and that election outcomes are unlikely to significantly affect the US economy over the next six to nine months.

Confirmed

Global impact / market context

More state restrictions could delay data centre construction, slowing projects that support AI infrastructure growth and potentially affecting suppliers’ expected sales. Aziz’s view that a nationwide pause is unlikely limits the scale of the policy risk, while permitting decisions could still vary by state.

Analyst inference

Aziz also expects rising US interest rates to weigh on non-technology stocks, while technology companies may be relatively better placed because of stronger cash flows and financing access. These are his views, not confirmed election outcomes or measured market effects.

Confirmed

What to watch

1. Watch which party wins governorships and whether state officials propose or adopt limits on data centre construction; the article identifies this as the key election-linked risk. Analyst inference
2. Watch whether a nationwide pause is proposed and how it proceeds: Aziz says a president’s veto would likely block such a measure, even if Congress supported it. Confirmed
3. Watch interest-rate changes and technology companies’ cash flows and financing access, since Aziz expects rates to pressure non-tech stocks more than technology firms. Confirmed

Evidence

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