Democrat Gina Hinojosa's election as Texas governor has raised concerns over tighter data-center rules, given the state's large pipeline of planned projects, says James Ooi, Tiger Brokers' chief market strategist, in a note.
Investors may be pricing in slower construction or fewer projects, Ooi says. AI accelerator and data-center infrastructure suppliers could face a longer wait for orders and revenue. By contrast, hyperscalers could see stronger cash flow as spending moderates, giving them room to resume buybacks or raise dividends. Smaller developers and operators may be more vulnerable, especially those heavily reliant on debt.
Delays could pile up financing costs before projects generate revenue, Ooi adds.