US data centre construction. Credit: iStock – Gerville
Around $3tn was wiped from the US stock market last week as investors sold shares in tech companies because of fears that last week’s mid-term elections will trigger a slowdown in data centre development.
The so called ‘magnificent seven’ tech companies, including Apple and Tesla, collectively lost a trillion dollars in value on Thursday (5 November), following the elections that resulted in the Democrats regaining control of the US Congress.
The party also won state governorships and legislatures with the powers to block data centre projects, which emerged as a key flashpoint in many election races.
In a poll for AP and other news organisations, 56% of surveyed voters said data centres were a ‘crucial or major’ factor in their vote, and 76% said they would oppose the construction of a new data centre in their community.
The tech-heavy Nasdaq index fell by 5.5% as investors sold shares in companies heavily exposed to data centres, fearing that the Democrat victory will slow their rollout.
After last week’s sell-off, the Daily Telegraph newspaper reported that British data centre developer Nscale is considering delaying plans for a $35bn stock market listing.
Microsoft announced last month that it had pulled out of a deal to take space at a data centre development planned by Nscale in Loughton, Essex.
