Data Centers

New York Governor Kathy Hochul has enacted a one-year moratorium on new, large-scale data center construction (50MW+), citing concerns over their significant energy and resource demands impacting the grid and ratepayers. This move, unprecedented in the U.S., aims to protect consumers and the environment while allowing for planned development. While lauded by environmental groups and some politicians, critics worry it may harm technological competitiveness. Public opinion polls indicate strong support for the moratorium.

Despite recent stock volatility, AI demand remains strong, with experts citing energy as the primary constraint. While some companies like Meta and xAI are leasing excess capacity, the overall market faces supply shortages for compute power and components. Enterprises are shifting from “tokenmaxxing” to “valuemaxxing,” prioritizing ROI and a more rationalized approach to AI spending. This trend is expected to sustain long-term demand.

The first half of 2026 saw a volatile yet upward stock market, with the S&P 500 gaining 9.5% and the Nasdaq 13%. Several portfolio holdings recovered, while others were divested. Geopolitical tensions and inflation persisted, but many tech stocks, like Intel, Arm, and Corning, surged. Palo Alto Networks and Eaton benefited from AI growth, while Starbucks recovered due to its turnaround plan. Nike underperformed significantly, leading to divestment. Amazon showed modest gains but lagged the market due to AI investment concerns.

The AI boom is driving massive demand for GE Vernova’s industrial gas turbines, essential for powering energy-intensive data centers. The company is rapidly expanding production and hiring to meet unprecedented orders from hyperscalers like Microsoft and Google. These turbines, capable of powering hundreds of thousands of homes, are crucial for AI infrastructure, leading to substantial price increases and a booked order book through 2029.

Anthropic is rapidly expanding its compute infrastructure in the Asia-Pacific region to meet soaring demand for its AI models. The company is actively hiring data center professionals in Australia and Japan, focusing on engineering, operations, and deal sourcing. This strategic move underscores intense global competition for AI processing power and highlights Australia’s advantages for infrastructure development, including land, renewable energy, and political stability, while Japan offers a strong domestic AI focus and evolving grid. Securing adequate energy supply remains a key challenge across the region.

Amazon engineers who testified against AI data center expansion face internal scrutiny and potential disciplinary action, including termination, after speaking at a Seattle City Council meeting. The engineers, part of Amazon Employees for Climate Justice, allege intimidation and violation of a city ordinance protecting political advocacy. Amazon states employees must follow policy when speaking on behalf of the company, while refuting claims of retaliation. This situation highlights growing public and employee concerns over unchecked AI growth and its societal impacts.

Entergy CEO Drew Marsh addresses concerns about AI data centers straining residential power. He assures that data centers can be good neighbors, with Entergy’s “Fair Share Plus” model ensuring they fully cover incremental infrastructure and some fixed costs. This strategy projects $7 billion in savings for existing customers over 15-20 years, balancing AI growth with affordability.

Corning’s stock surged following a major data center agreement with Amazon, signaling strong demand for its optical fiber. This, along with significant deals from Meta and Nvidia, solidifies Corning’s critical role in the booming AI infrastructure and data center market. The company’s optical communications segment is experiencing substantial growth, driven by hyperscaler investments. These strategic partnerships ensure guaranteed revenue and align production with confirmed demand, positioning Corning for sustained long-term growth beyond its diversified glass manufacturing business.

Amazon is investing billions in optical fiber from Corning to power its U.S. data centers, driving the AI boom and creating 1,000 jobs in North Carolina. This multi-year agreement highlights the critical role of Corning’s fiber optics in AI infrastructure. The deal bolsters Corning’s manufacturing and training programs, underscoring its strategic importance as a key supplier for hyperscalers and AI labs.

SoftBank’s €75 billion AI infrastructure investment in France highlights the nation’s growing tech hub status. However, these data centers’ significant energy needs strain Europe’s grids. France’s nuclear power reliance offers a strategic advantage amid high industrial electricity prices. While SMRs show promise for data center power, widespread adoption faces challenges due to their developmental stage and lack of operational units outside China and Russia.