The Nasdaq 100 lost roughly $2.5 trillion Thursday as investors worried that tighter data-center rules could slow the AI buildout.
But lower capacity growth doesn't necessarily mean lower CapEx.
New grid requirements, water restrictions and the loss of tax incentives could make each delivered megawatt more expensive, even as fewer projects get built.
That's not automatically bullish for infrastructure suppliers.
A hyperscaler spending more to deliver less capacity may generate higher CapEx but weaker returns. Meanwhile, operators with permitted, energized sites could gain bargaining power as new supply becomes harder to bring online.
The number I'd watch isn't total AI CapEx alone.
It's the cost per revenue-generating megawatt — and how much cash that megawatt ultimately earns.
#stock #StocksDown
But lower capacity growth doesn't necessarily mean lower CapEx.
New grid requirements, water restrictions and the loss of tax incentives could make each delivered megawatt more expensive, even as fewer projects get built.
That's not automatically bullish for infrastructure suppliers.
A hyperscaler spending more to deliver less capacity may generate higher CapEx but weaker returns. Meanwhile, operators with permitted, energized sites could gain bargaining power as new supply becomes harder to bring online.
The number I'd watch isn't total AI CapEx alone.
It's the cost per revenue-generating megawatt — and how much cash that megawatt ultimately earns.
#stock #StocksDown