JPMorgan’s Michael Cembalest is worried about data center build-outs following midterm elections, and he’s looking two years ahead.
The real test for the artificial intelligence build-out is what happens in 2028, analysts say
In short
The multi-year infrastructure expansion cycle is drawing increased scrutiny regarding its long-term momentum and overall sustainability. JPMorgan analyst Michael Cembalest is monitoring conditions two years into the future that could challenge ongoing facility construction. In particular, Cembalest has noted potential risks facing data center development after midterm elections. These emerging factors could ultimately reshape the trajectory of technological build-outs.
Key points
- The ongoing expansion faces growing skepticism regarding its multi-year momentum and over…: The ongoing expansion faces growing skepticism regarding its multi-year momentum and overall viability.
- Post-midterm political dynamics present specific concerns for future data center construc…: Post-midterm political dynamics present specific concerns for future data center construction projects.
- Analysts are actively scrutinizing factors that could reshape infrastructure development…: Analysts are actively scrutinizing factors that could reshape infrastructure development two years out.