US Midterm Results Raise Risks for Data Center, AI Infrastructure Buildout, UBS Says

12:45 PM EST, 11/04/2026 (MT Newswires) -- Potential pauses in new data center construction following the US midterm elections could weigh on AI infrastructure and cloud stocks, with about 30% of expected 2028 capacity additions at risk, UBS Securities said Wednesday in a report. Texas accounts for 18 gigawatts of the capacity at risk, while data centers may also face higher costs if they are required to fund grid upgrades, the report said. The slowdown would be a headwind for semiconductor and AI infrastructure companies, although much of the impact may already be reflected in semiconductor valuations, which are nearing multiyear lows, UBS said. A slower pace of data center construction may ease financing concerns and shift some planned capacity additions into 2028 from 2027, the report said. UBS also said developments involving Iran are driving a "repricing" in oil as investors assess the risk of further escalation following the midterms. Continued negotiations would be a "net positive for stocks," the report said.