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UBS CEO Warns of an AI Buildout Slowdown as Data Center Construction Hits a Record
Spending on US data center construction has never been higher, but the boom may face a test in Washington. UBS CEO Sergio Ermotti said that the Democratic midterm sweep may slow the AI buildout. That spending reached a $96.
Brief
US data center construction has reached a record, with spending running at a $96.5 billion annual rate, a 90 percent rise over the prior year. UBS CEO Sergio Ermotti told Bloomberg that Democratic midterm gains could slow the AI buildout. ConstructConnect, which tracks new groundbreakings, logged $9.4 billion of September starts, under half of August's record $25.8 billion. Total US construction spending fell 1.9 percent in September, the Census Bureau reported, its sharpest monthly drop since April 2020, while data center outlays rose 8.6 percent, according to the Associated General Contractors of America. Ermotti sees AI as a strong long-term growth driver but expects near-term volatility. November figures, covering the first complete month following the vote, will show whether developers pull back.
Why it matters: Data center work is propping up a weakening building market, so any pullback in new projects could weigh on total US construction spending.
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