Could the US midterms put a pin in the AI bubble?

The AI boom came under pressure as investors sold off US tech shares, with the Nasdaq hit hardest, amid doubts about whether huge investments will deliver expected returns. Democratic gains in the midterm elections have added to concern that tighter rules on AI and data centres could slow the industry’s expansion.

The article says expected AI investment could reach $1 trillion in 2026, while the sector’s demand for funding has also pushed up borrowing costs elsewhere. Local opposition focuses on data centres’ use of water and electricity, noise and impact on communities; a May Gallup poll found 71% of Americans opposed a data centre in their community. With Democrats controlling Congress, they are expected to challenge the administration’s technology agenda, though concerns about the industry’s prospects pre-date the election.