Democratic data center fears trigger 6% tech stock selloff

Technology stocks plunged on Wall Street Thursday, with the Nasdaq 100 falling 6.36%, as investors feared Democratic election victories could lead to stricter regulations on data centers and reduced AI investment. The S&P 500 dropped 4.35% and the Dow Jones lost 3.44%, while semiconductor firms fell over 12%, with Nvidia down 9.26%. The "Magnificent Seven" tech giants lost over $1 trillion in combined market value, marking the second-largest single-day decline on record. Analysts warn that new Democratic governors may impose restrictions or moratoriums on data center construction, potentially affecting up to 45% of planned expansion projects. Goldman Sachs and UBS estimate significant capacity additions could be at risk by 2028, with local communities increasingly questioning the costs of these facilities.