Meta President Dina Powell McCormick warns of data center election backlash

Nov 6

1. 05:50

   Rohan Paul

   US stocks shed $3.2 trillion in a single day; AI chip stocks plunge on data center policy concerns

   On November 5, US stocks shed $3.2 trillion in market value in a single day, with the Nasdaq Composite falling 5.52%, its worst single-day performance since April 2025, as investors sold off AI chip stocks. The market fears that Democratic control of Congress will slow the highly leveraged AI spending boom; Goldman Sachs said a short-term moratorium could affect about 45% of planned US data center capacity. Nvidia fell 9.3%, the Philadelphia Semiconductor Index fell 12.3%, SanDisk dropped 22%, and Micron, Western Digital and AMD each fell 17%.

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2. 04:25

   Rohan Paul

   WSJ: After Democrats Win Both Chambers and Key Governorships, About Half of Planned US AI Data Centers May Face Stricter Local Review

   WSJ reports that after Democrats won the House, the Senate, and several key governorships, about half of the planned new AI data centers in the US may face stricter local review. States previously friendly to builders, such as Texas and Ohio, may pause construction until residents receive guarantees on water supply and electricity prices. Meta President Dina Powell McCormick said every hyperscaler is considering building outside the US; within days, OpenAI committed to avoiding nondisclosure agreements in data center deals and to preventing residents from bearing project electricity costs. Congressional Democrats are expected to investigate AI safety incidents through hearings and subpoenas. Elizabeth Warren, who is expected to become chair of the Senate Banking Committee, previously held a hearing with CEO Jensen Huang over Nvidia's China chip sales requirements, but was refused.

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3. 03:51

   cnBeta

   Meta warns that resistance to data center construction is rising, and political backlash may affect AI expansion plans

   Meta President Dina Powell McCormick warned that a Democratic victory in the midterm elections could create more obstacles for companies building data centers, and future projects will face stricter scrutiny. Meta has currently deployed data centers in 23 states across the U.S., among which five projects, including those in Texas, have planned capacity reaching or exceeding 1 gigawatt. She said the company will bear the electricity costs itself, invest additional tax revenue in public services, and prioritize hiring local workers, while also being optimistic that the consumer AI assistant Muse will continue to expand from about 10 million users.

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4. 03:51

   cnBetaRelated discussion

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5. 03:12

   TechCrunch AI

   Meta warns that data center resistance after the midterm elections could slow AI expansion

   Meta President Dina Powell McCormick said at the WSJ Tech conference that Democratic victories in the midterm elections would make it harder for companies to build data centers, and said the industry has not adequately explained the benefits of these investments. She believes that sentiment against data centers is related to how people feel about AI overall; Meta currently has data centers in 23 states, 5 of which are planned as 1-gigawatt or larger projects. She also mentioned that Meta seeks community support by paying electricity costs itself, directing tax surpluses to teachers and first responders, and hiring local workers, and she expects future data center projects to face more scrutiny.

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