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Fri, 06 Nov 2026

Fri, 06 Nov 2026 Why the US midterms sparked an AI stock selloff

Fears of more AI regulation appear to have sparked fear among investors, but concerns about the industry have been growing for some time.

* US midterm elections results gave Democrats control of Congress, prompting fears of increased regulation on data centres and the AI industry.
* Data centre expansion has been criticized for its environmental impact, with 71% of Americans opposing their construction in their community, according to a Gallup poll.
* Democrats are expected to challenge President's technology agenda and introduce legislation to curb the industry's growth.
* Tech stocks plummeted after the election results, but some experts believe this is just a correction rather than a sign of an impending bubble burst.
* Investors will assess whether the political shift could result in restrictions on data centre construction, energy consumption, and AI technology deployment.