AI infrastructure has devolved from "technological narrative" into "poisoned ballots"! Wall Street is sounding a unified alarm: AI trading faces political risks from the mid-term elections.

The physical backbone of artificial intelligencedata centersis transforming from a grand blueprint in Silicon Valley to a "giant electricity bill" on the doorsteps of American voters. The tactical strategy team at Barclays PLC Sponsored ADR officially included this risk in its market outlook on Tuesday, warning investors not to assume that "the rapid growth of AI applications can coexist with a loose political environment in the long term." Evercore ISI and BCA Research have previously warned that a populist backlash against AI could bring trouble to the stock market. Bank of America Corp stated bluntly that if the Democrats secure the Senate and the governorship of Texas in the midterm elections, U.S. stocks could fall by more than 10% next year. "The construction of data centers is turning AI from an abstract technological narrative into a concrete issue of living costs," wrote Barclays strategists Jenny Yang and Alex Altmann in their report. Even voters who have never used ChatGPT cannot escape the consequences brought by data centershigher electricity bills, increasingly strained water resources, and industrial facilities rising in their communities. While Wall Street is still embroiled in debates over the valuation and capital expenditures of AI chip stocks, a political storm from the heartland of America is quietly changing the fundamental logic of AI investment. From Pennsylvania to Texas, and from New York to Florida, the construction boom of AI data centers is encountering unprecedented bipartisan resistanceresistance that is becoming the most potent political issue in the 2026 midterm elections. This "Not In My Backyard" (NIMBY) movement sparked by AI is becoming an "invisible bomb" that tears apart both parties in the 2026 midterm elections. From "NIMBY" to "poisonous ballots": The political attributes of AI infrastructure have fundamentally changed. Wall Street's concerns are not unfounded; polling data clearly reveals a sharp shift in voter sentiment. A Gallup survey published in May showed that about 71% of Americans oppose the construction of AI data centers in their areas. A Fox News poll in July revealed that 70% of voters oppose building data centers to support AI in their districts, and 78% support slowing construction. Opposition crosses party lines69% of Democrats, 54% of Republicans, and 53% of independents oppose it. In the first quarter of 2026 alone, 75 data center projects with a total investment of approximately $130 billion faced varying degrees of community opposition. The core reason for voter opposition is rising electricity costs. Research data shows that the construction of data centers leads to an average increase of about 18% in local residents' electricity bills. Due to the massive power consumption of AI data centers, U.S. wholesale electricity prices have skyrocketed nearly 2.7 times. Against the backdrop of ongoing inflation pressures, this is like pouring gasoline on the fire for ordinary households. This anger is rapidly becoming organized. In July, opponents of data centers held 142 protests across 42 states. From the East Coast to the West Coast, the "heat" surrounding data centers is shifting from the tech sector to voter forums. Barclays strategists Jenny Yang and Alex Altmann succinctly stated in a report to clients that "the construction of data centers is turning AI from an abstract technological story into a concrete issue of living costs." "Even voters with limited exposure to AI will be affected by higher electricity bills, water resource pressures, and the construction of industrial facilities in their communities." Reports in July pointed out that opposition to AI data centers has become "one of the few issues capable of mobilizing voters across the political spectrum," and politicians from both parties are striving to adapt to this new reality. A "regulatory avalanche" in states: From New York bans to Pennsylvania's "strictest" rules. Political opposition has quickly translated into substantive regulatory tightening. In mid-July, New York became the first state in the U.S. to "hit the brakes" on large-scale data centers at the state levelGovernor Hochul signed an executive order pausing state-level environmental reviews for data centers larger than 50 megawatts. This executive order is widely seen as the first substantial restriction on AI infrastructure in the nation. Florida passed legislation explicitly requiring that the new electricity costs of large data centers not be passed on to ordinary residents and small businesses. Michigan Republican Senate candidate Mike Rogers publicly called for a one-year moratorium on data center construction. Ohio has suspended tax breaks for data centers. Senate Democrats have even proposed a bill to terminate the federal tax incentives currently enjoyed by data centers. The controversy surrounding AI data centers has deeply embedded itself in the political landscape of the midterm elections. Texas and Pennsylvania have become two key battlegrounds in this game. On August 18, Pennsylvania introduced the "strictest" data center regulation rules in the nation. Governor Shapiro signed an executive order requiring data center developers to resolve their own power supply issues, bear related electricity costs, and gradually increase the ratio of Clean Energy Fuels Corp. usage; they must also "respect local communities, maintain transparency with them, and prioritize local hiring." Developers must sign a "legally binding consent agreement," and non-compliance will face strict penalties. Texas Governor Abbott has ordered an audit of all data center projects applying to connect to the grid. Analysts from Jefferies Financial Group Inc. have characterized this move as a "chilling signal" for power stocks. Abbott has also publicly advocated that large data centers should bear the infrastructure costs, increase power supply, and recycle water resources. Texas is one of the states with the highest number of operational and planned data centers in the U.S. and is a traditional Republican stronghold. The team led by Bank of America Corp Chief Investment Strategist Michael Hartnett has placed the Texas gubernatorial election at the core of its market forecasts. The election battle between incumbent Republican Governor Greg Abbott and Democratic challenger Gina Hinojosa is viewed as a referendum: on one side, the demand for tech giants to expand AI infrastructure; on the other, voters' profound concerns over rising electricity costs and community impacts. Hartnett's team warns that if this Republican stronghold tightens policies against data center construction, it will send a clear signalthat the anti-AI infrastructure sentiment has transcended party lines and become a bipartisan political consensus. Abbott has ordered an audit of all data center projects applying to connect to the grid this month, a move analysts from Jefferies Financial Group Inc. have characterized as a "chilling signal" for power stocks. Wall Streets political pricing: Barclays, Bank of America, and Evercore collectively sound the alarm. Wall Street is incorporating this political risk into investment frameworks at an unprecedented pace. Barclays PLC Sponsored ADR is the latest institution to join the warning ranks. Its strategy team noted that the bank's customized AI data center indexwhich includes over 40 stocks such as Super Micro Computer, Inc. (SMCI.US), Arista Networks (ANET.US), and Microsoft Corporation (MSFT.US)has begun to reflect this risk. Barclays believes that regardless of the midterm election results, AI trades lack new upward catalysts. Hartnett's team has placed the Texas gubernatorial election at the heart of its market predictions. Hartnett warns that if Democrats control the Senate and win the governorship of Texas simultaneously, U.S. stocks could fall more than 10% next year, meeting the definition of a technical correction. Evercore ISI and BCA Research have also previously warned that the populist backlash against AI could cause trouble for the stock market. BCA's core conclusion is even more far-reaching: "The populist backlash against AI could lead both parties to jointly promote regulatory legislation by 2027, but especially could trigger massive tax increases after 2029." Trumps "headwind": When the president's enthusiasm for AI meets the collective resistance of voters. President Trump is a staunch supporter of AI and data centers, but his position is becoming a political burden for Republican candidates. Last week, Trump stated in a radio interview that communities rejecting data centers "are making a mistake." He repeatedly emphasized that data centers bring "great job opportunities and tax revenue," framing the AI race as a national security priority in competition with China. However, this position is tearing the Republican Party apart. As reported by Bloomberg in July, Republican candidates are distancing themselves from Trump on the issue of data centers to improve their prospects ahead of the midterm elections. The Senate Republican campaign arm has issued internal memos to top AI companies warning that negative views on data centers are killing the party's chances of preserving key seats in Ohio. Henrietta Treyz of investment advisory firm Veda Partners points out that "super leading companies in the AI sector are facing huge risks," and states' AI regulatory policies will provide a template for federal-level legislation.