# AI stocks plunge as data centre backlash reaches Congress

> US markets suffer their worst day in months as election results empower politicians opposed to new data centre construction.
- Title: AI stocks plunge as data centre backlash reaches Congress
- Summary: US markets suffer their worst day in months as election results empower politicians opposed to new data centre construction.
- Keywords: s&p 500, nasdaq, nvidia, data centres, ai infrastructure, stock market, election results, tech stocks, microsoft, alphabet, meta, amazon
- Source: The Next Web — https://thenextweb.com/news/ai-stocks-sell-off-nasdaq-correction
- Author: Ana-Maria Stanciuc
- Published: 2026-11-06T09:36:07+00:00
- Read time: 2 min
- Topics: s&p 500, nasdaq, nvidia, data centres, ai infrastructure, stock market, election results, tech stocks, microsoft, alphabet, meta, amazon
## Markets suffer worst day in months
The S&P 500 fell four point four percent to close at seven thousand three hundred fifty-three point seventy-three on Thursday, November fifth, its biggest single-day drop since April two thousand twenty-five.
## Tech stocks hit hardest
The Nasdaq Composite dropped five point five percent to twenty-four thousand three hundred fifteen. The tech-heavy index is now eleven point nine percent below its October record, putting it in correction territory.
## AI infrastructure stocks collapse
Nvidia dropped nine point three percent. Advanced Micro Devices fell seventeen point three percent. CoreWeave, which rents computing capacity for AI workloads, lost nine point eight percent. GE Vernova fell seven point five percent.
## Big tech investors also lose ground
Microsoft, Meta, Amazon and Alphabet all lost between two percent and four percent as investors pulled back from companies investing heavily in AI infrastructure.
## Election results shift data centre politics
Democrats won control of both chambers of Congress and several governorships in states with large data centre concentrations. Opposition to new facilities became an increasingly prominent local issue during campaigns.
## Voters reject data centres locally
In an NBC exit poll, almost sixty percent said data centres were a crucial or major factor in their vote. Nearly eighty percent said they opposed having one built in their neighbourhood.

> almost 60% said data centres were a crucial or major factor in their vote
## Referendums overwhelmingly restrict development
Restrictions were approved in forty-four of the forty-five completed data centre referendums across twelve states. Of thirty-four governors' races, thirty-two were won by candidates who supported tighter rules or restrictions.
## Texas becomes key battleground
Texas accounts for twenty-seven percent of planned US data centre capacity.Democrat Gina Hinojosa defeated Governor Greg Abbott after campaigning against data centre projects.
## Ohio voters ban large data centres
In one Ohio county where Meta had planned a facility covering roughly sixty-five thousand square metres, voters approved a ban on large data centres. Democrat Amy Acton's election as governor adds uncertainty.
## Federal restrictions proposed
Senator Bernie Sanders and Representative Alexandria Ocasio-Cortez introduced legislation for a nationwide moratorium on new data centres until Congress establishes rules on electricity costs, environmental impact and community approval.
## Tech spending forecasts disappoint
Microsoft and Alphabet reported quarterly capital expenditure below analysts' expectations on October twenty-eight. Microsoft lowered its full-year spending forecast to one hundred seventy billion dollars from one hundred seventy-five billion dollars.
## Individual investors flee stocks
By mid-afternoon on Thursday, individual investors had become net sellers of roughly three hundred fifty-eight million dollars in US stocks, their largest net selling since March two thousand twenty, according to Vanda Research.
## Real test comes when new leaders take office
The more important test will come next year when newly elected governors and legislators take office and begin turning campaign promises into policy.
## Key takeaway

US stock markets fell sharply on November fifth as investors worried that newly elected politicians opposed to data centres could slow AI infrastructure expansion.