September 7, 2026
Analyst Dan Ives says 10 to 15 percent of US data center projects could be cut as political backlash against AI grows.
What happened
Wedbush analyst Dan Ives warned that political backlash is now the biggest threat to the AI boom, forecasting that 10 to 15 percent of US data center projects could be cut. His warning coincided with Representative Ted Lieu criticizing the Trump administration for letting the AI industry run wild and citing a survey showing 81 percent of Americans want AI regulation. The combined news moved roughly 500 billion dollars of market value.
Why it matters
Data centers are the physical foundation of the AI buildout. If even one in ten projects is cut, that directly reduces demand for chips, power equipment, and cloud infrastructure. The spending plans of hyperscalers and the revenue forecasts of hardware suppliers are built on an assumption of uninterrupted expansion. Political resistance introduces a new risk that those capital expenditure plans will not fully materialize.
The case against
A warning from one analyst is not a cancellation order. The forces driving AI investment, corporate fear of falling behind and massive expected demand, are still intact. The 81 percent survey number measures a general desire for guardrails, not a specific plan to halt data center construction, and November elections may or may not turn that sentiment into binding policy.
Our read
Our view is that investment in AI compute buildout will continue to drive growth over the next two to three years. This rests on evidence that companies are raising capital expenditure to support AI infrastructure. The political backlash is a new risk, but our existing framework says that risk has not yet overridden the capex trend.
What settles it
Watch for any federal or state legislation that directly limits data center construction or power access for new projects.