Democrats' midterm win threatens AI boom as tech stocks tumble

Democrats' strong performance in the November 3 US midterm elections has raised fears of tighter restrictions on AI development and data centre construction, triggering a sharp fall in global technology stocks. Democratic leaders, including Senator Bernie Sanders, have called for a nationwide halt to new data centre projects, citing environmental concerns, high electricity use, and impacts on local communities. Voters approved nearly every ballot measure seeking restrictions on data centre development across at least 40 jurisdictions in 10 states. The sell-off wiped out an estimated $2.5 trillion in market value from the Nasdaq, with Nvidia shares falling around 9 per cent and AMD declining more than 17 per cent. President Donald Trump has backed data centre expansion, while Democratic candidates made oversight a key campaign issue.