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The Washington Post reports that Amazon and other cloud/AI companies are building new large gas-fired power plants to run data centers, locking in emissions for decades. Amazon's own carbon footprint hit 80.85 million metric tons last year, 58% higher than when it pledged to cut emissions, putting it far off the Paris Agreement trajectory that would require a 43% cut below 2019 levels by 2030.
In Tuesday's midterm elections, voters across multiple localities rejected ballot measures that would have fast-tracked data center construction. Democrats also won key races, including Texas governor-elect Gina Hinojosa, who campaigned on restricting data centers, in a state where Elon Musk has relocated his companies' headquarters after donating roughly half a billion dollars to Republicans.
Anthropic is preparing a Nasdaq listing, reportedly targeting mid-November, with investors now eyeing a valuation of $1 trillion to $1.5 trillion—down from earlier talk of $2 trillion. The timing follows a steep Nasdaq selloff and midterm election results in which candidates favoring stricter AI regulation won in several states, and local communities rejected data center proposals in 40 of 41 ballot measures.
Police say sophisticated thieves stole six pallets of Nvidia equipment worth $11.4 million after the shipment left Oakland on August 29 bound for Fort Worth, Texas. The loss wasn't discovered until early September, and investigators lost the suspect vehicle's trail in San Bernardino County after multiple lengthy stops. No suspects have been arrested.
Democrat Will Lawrence, who built his congressional campaign around opposition to data center expansion, defeated Republican incumbent Tom Barrett in Michigan's 7th District. The race was one of the most expensive House contests this cycle, with Elon Musk's America PAC spending $340,000 against Lawrence. Lawrence, a former Sunrise Movement co-founder, says voter anger over rising costs and perceived corruption tied to data center development helped power his win.
OpenAI CFO Sarah Friar told CNBC the company will continue investing heavily in data center construction to meet corporate customer demand, even after midterm elections where voters in 41 of 42 local ballot measures backed restrictions on AI data centers. Friar said OpenAI will keep building relationships with hyperscalers and raising capital, arguing that demand for AI remains strong regardless of political pushback.
Following midterm election gains, Reuters reports that the new Democratic majorities in the House and Senate are preparing legislation targeting AI companies and data centers. The proposed measures reportedly include rules to curb energy-price increases tied to data center growth and a bill establishing product liability standards for AI developers.
Gina Hinojosa, the governor-elect of Texas, said she will impose stricter terms on Elon Musk's businesses, including a push for a moratorium on new data center construction pending stronger regulations. She also confirmed she has asked the Texas Parks & Wildlife Department to halt any action on a possible sale of state park land to SpaceX.
Jim Cramer said next week's earnings from companies tied to AI infrastructure, including Constellation Energy and neocloud CoreWeave, will test whether the recent selloff in data center stocks has stabilized. He noted Friday's market rebound followed the worst trading day in 19 months, triggered by election results that shifted control of Congress and some governorships. Cramer also pointed to Tuesday's CPI report as a factor that could influence Federal Reserve Chairman Kevin Warsh's next move on interest rates.
Investors in Anthropic now doubt the AI company can reach even a $1.5 trillion valuation at IPO, down from earlier talk of $2 trillion, according to people who spoke to CNBC. One investor called $1.5 trillion a 'stretch' and suggested $1 trillion to $1.25 trillion is more realistic, though figures could shift with market conditions. Anthropic, which was privately valued at $965 billion in May, declined to comment and is expected to begin its IPO roadshow next week under the ticker ANT.
Microsoft is scaling back the number of neocloud providers it works with, including CoreWeave, Nebius, Chronoscale, IREN, Lambda and Nscale, according to people familiar with the matter. The company has not yet decided which partners to cut but is reportedly favoring its own data center buildout, and two sources said Microsoft chose not to renew a deal with Oracle. Microsoft said its infrastructure approach relies on a mix of owned, leased and third-party capacity that it reviews regularly against customer demand.
In Tuesday's U.S. midterm elections, voters decided on 41 ballot measures related to data centers, approving added restrictions in all but one. The results came alongside Democratic wins for governor and congressional seats, with candidates who campaigned partly on tighter oversight of data centers and Big Tech. TechCrunch's Equity podcast discussed the implications for the tech industry, noting OpenAI's recent efforts to rebrand data centers.