AI data center construction slowdown is a stock market variable... Mid-term strength amid caution over midterm elections

Darius Dale, founder of 42 Macro, warned that markets are underpricing how post-midterm AI regulation could slow data center construction and pressure corporate earnings, in a November 3 interview with Natalie Brunell. He said the market has not fully reflected the impact of the midterm elections on data center investment and profit outlooks. Dale said he remains bullish on a three-to-twelve-month horizon, but cautioned that if political factors cause construction to slow, global institutional investors could cut risk exposure as they did in the fourth quarter of 2018. The call points to wider volatility and downside risk over the coming months even as earnings-backed midterm strength holds. Investors should watch for signs of delayed data center projects and any pullback in risk assets following the elections.