Dan Ives warns political backlash threatens U.S. data center buildout
Dan Ives told CNBC that political backlash against U.S. data center buildouts is the biggest threat to the AI revolution and estimated 10% to 15% of proposed projects could be cut.
While Wall Street focuses on capital expenditure, Yorkville Ives partner Dan Ives argues that growing political backlash against data center buildouts is the single biggest threat to the tech revolution, following his tour of Midwest infrastructure sites. The ‘Hearts and Lungs’ of AI Ives told CNBC that the physical infrastructure of the AI revolution is facing unprecedented local resistance. After observing heavy investments and innovation from tech giants like Meta Platforms Inc. (NASDAQ: META ) and Google’s parent company, Alphabet Inc.
(NASDAQ: GOOG ) (NASDAQ: GOOGL ), in Nebraska, he noted that these facilities serve as the “hearts and lungs” of the AI buildout. The analyst estimates that between 1,000 and 1,500 data centers are currently in motion across the United States to power demand for hyperscalers and neo-clouds. However, community pushback is escalating. Protesters in Austin, Texas, are demanding moratoriums, and a $100 billion project in Virginia was recently scrapped.
S. data centers could ultimately get cut. Read Also: Howard Lutnick Calls AI Data Center Water Concerns ‘Propaganda by Our Adversaries’ — Federal Research Tells a Different Story A ‘Boxing Match Debate’ The geopolitical stakes are historic. S.
is ahead of China in technology, arguing that maintaining this lead will require continued investment in domestic AI infrastructure. As the nation moves toward the midterm elections, Ives fears that local zoning and tech expansions will become deeply politicized. “It’s not capex, it’s not use cases, it’s not what I view as the bull case,” Ives emphasized. ” He predicts the issue will not fade quickly, but will instead become a “boxing match debate” on the campaign trail.
The ‘Calculus Changes’ for Tech Stocks If cancellation rates double past Ives’ 15% threshold, the broader market will feel the sting. A severe bottleneck in physical capacity means enterprise customers will face higher costs, and a high-stakes game of “musical chairs” will begin for the remaining computing space, he explained. When asked if tech stocks will suffer under this scenario, Ives was unequivocal. Software developers, hyperscalers, and neo-cloud companies will all “pay a price” if the data center pipeline stalls.
The next six to nine months, he warned, are a critical window for the trajectory of the AI revolution. How Have AI-Linked ETFs Performed? 91% Read Also: Jeff Currie Calls Scott Bessent’s Treasury Buybacks 'Financial Repression' — And the Ultimate Buy Signal for Gold Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published editors. Photo courtesy: USA Today Connect