Data center shares fall as investors expect slower AI buildout after Democrats win Congress; Hut 8 drops 23%, IREN 11%, Core Scientific 10%, Applied Digital 7%

The cost of building out AI infrastructure increases as a consequence of this market shift.

Data center shares dropped as investors anticipate a slower artificial intelligence buildout following the Democrats' midterm election victory. Hut 8 fell 23%, IREN 11%, Core Scientific 10%, and Applied Digital 7%.

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The market is reacting to perceived political stability by adjusting expectations for AI hardware investment. Investors are signaling a potential slowdown in the rapid expansion of data centers needed for AI, which could impact future hardware demand and deployment timelines.