‘A major risk to the global economy’: BofA warns about the AI boom the day before a midterm vote framed around data-center backlash

“Investors are increasingly concerned about the sustainability of the AI trade, and the more capex rises, the more risks loom,” they wrote. A slowdown would hit growth directly and through the wealth effect, as stock gains that have propped up spending reverse. They also tie some of the rise in interest rates to the borrowing needed to pay for the buildout.

Voters have their own complaints about the buildout.

They will decide 41 local data-center ballot measures on Tuesday, from new requirements for developers to outright bans on construction,Axios reported, citing Ballotpedia.