The slowdown in data center construction supports the performance of Microsoft and Amazon

In the U.S. midterm elections, 40 out of 41 ballot measures restricting data center construction are expected to pass. Despite significant investments in data centers by Microsoft and Amazon, their stocks fell approximately 2.5% and 1.5%, with declines lower than other related companies.

The market believes that the slowdown in construction will help reduce capital expenditure pressure and improve free cash flow. Attention should be paid to the regulatory agenda and local policy implementation after the Democrats take control of Congress.