Resistance to data centers is not divided along traditional party lines. It's a local issue where challengers from both parties use it against incumbents. Consequently, gubernatorial races are more impactful than congressional ones, as governors can appoint key public utility commissioners who regulate these projects.
The same voter concerns driving local pushback against data centers also fuel a national desire for 'AI sovereignty'—the need to control AI capabilities and supply chains. This national security impulse creates a powerful tailwind for continued government-supported AI spending, partially offsetting local regulatory hurdles.
The primary goal of upcoming US-China diplomatic meetings is not to resolve major conflicts but to maintain the current state of 'managed stability'. Investors should expect only small, incremental changes, while acknowledging that room for 'tactical escalation' remains within these controlled bounds.
Equity markets historically exhibit negative seasonality leading into midterm elections. While current policy narratives may seem to reinforce this weakness, the underlying secular trend of the AI infrastructure buildout is expected to remain strong and less sensitive to election outcomes than campaign rhetoric suggests.