‘A major risk to the global economy’: BofA warns about the AI boom the day before a midterm vote framed around data-center backlash

BofA economists warned Tuesday that a sustained correction in the AI investment boom poses "a major risk to the global economy," a caution issued one day before midterm elections in which voters across 10 states will decide 41 data-center measures. The warning underscores how deeply AI-linked capital spending—spaning data centers, chips, and power infrastructure—has become embedded in GDP growth and market leadership, making any pullback a potential macro event rather than a sector-specific one. The simultaneous ballot measures signal rising local resistance to data-center buildouts over power, water, and tax impacts, adding a regulatory and permitting dimension to financial risk. Watch next: the midterm outcomes for signals on the political durability of the AI buildout, plus upcoming hyperscaler capex guidance and utility load-growth disclosures for evidence of spending momentum or cracks.