Citi: Data Center Opposition Has Not Weakened AI Construction Pipeline

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Summary · why it matters

Citi says growing political opposition to artificial intelligence infrastructure ahead of the November U.S. midterm elections has not materially weakened the data center construction pipeline. Data center development has become a bipartisan flashpoint, with local governments introducing moratoriums and at least 15 state legislatures proposing tighter regulatory restrictions, yet spending remains strong as AI infrastructure demand continues to support development. The impact has been concentrated among speculative and early-stage projects, which are increasingly delayed or cancelled during local approval processes, while late-stage developments that have already secured sites and grid connections continue to move ahead. Hyperscalers are seeking workarounds to power constraints and local restrictions, with Amazon pursuing direct investment in nuclear development with Dominion Energy and Meta securing a major nuclear power purchase agreement with Constellation Energy. Citi does not expect another market shock comparable to the emergence of DeepSeek, arguing investors have already adjusted to the prospect of highly efficient Chinese models, though it flags a potentially greater risk from governments restricting models deemed too dangerous, which could abruptly create excess computing capacity.

Impact on assets 6

Artificial Intelligence▲ · 3 stocks
Amazon.com Inc
AMZN
▲ PositiveCapitalSupplyrelevance

Amazon is pursuing direct investment in nuclear development with Dominion Energy to work around power constraints and local data center restrictions.

Meta Platforms Inc.
META
▲ PositiveDemandrelevance

Meta secured a major nuclear power purchase agreement with Constellation Energy to power its AI data centers.

Energy Transition & Power Demand▲ · 2 stocks
Constellation Energy Corp
CEG
▲ PositiveDemandrelevance

Meta secured a major nuclear power purchase agreement with Constellation Energy, a concrete demand deal for its power.

Dominion Energy Inc
D
▲ PositiveDemandrelevance

Amazon is pursuing direct nuclear investment with Dominion Energy, a concrete demand development for the utility.

Digital Finance & Tokenization▲ · 1 stocks

Theme Impact 10

Off-coverage companies 1

DeepSeekPrivate± Mixed
relevance

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