WS #17048
A new analysis reveals that 41% of pending US data center capacity is located in states where newly elected governors have promised to pause or stop construction. This political friction, coupled with BofA's warning of a slowdown in AI buildouts, challenges the seamless expansion narrative. While OpenAI CFO reaffirms commitment to spending, the regulatory risk in key states like California and New York could delay projects and increase costs for hyperscalers. US options markets hit record volume following Thursday's market rout, with the VIX curve inverted and tech options pricing significantly more risk than the broad index. This surge in hedging activity, alongside Walleye Capital's return of $2 billion to clients, indicates institutional de-risking. The market is pricing in a higher probability of a sharp correction or policy-driven volatility in the near term.
AI Infrastructure Regulatory Headwinds
A new analysis reveals that 41% of pending US data center capacity is located in states where newly elected governors have promised to pause or stop construction. This political friction, coupled with BofA's warning of a slowdown in AI buildouts, challenges the seamless expansion narrative. While OpenAI CFO reaffirms commitment to spending, the regulatory risk in key states like California and New York could delay projects and increase costs for hyperscalers.
US options markets hit record volume following Thursday's market rout, with the VIX curve inverted and tech options pricing significantly more risk than the broad index. This surge in hedging activity, alongside Walleye Capital's return of $2 billion to clients, indicates institutional de-risking. The market is pricing in a higher probability of a sharp correction or policy-driven volatility in the near term.