JPM · News · 20261108N

AI Data Center Development Risk

JPMORGAN CHASE & CO · 2026-11-08 · Importance 17 · Surprise 24

JPMorgan Asset Management Global Market Strategist Stephanie Aliaga warned that public and political opposition could challenge the AI data-center buildout. Current projects are reportedly largely unaffected, but the next development wave from 2028 onward could face higher costs, longer negotiations, and delays amid concerns about electricity, water, and grid strain. Tougher development requirements could favor well-capitalized developers and redirect investment toward more welcoming regulatory environments.

Key facts

• According to JPMorgan Asset Management Global Market Strategist Stephanie Aliaga, current data center projects are largely unaffected, while the next wave of development from 2028 onward faces increased risks of higher costs, longer negotiations, and potential delays due to community pushback regarding electricity, water, and grid strain. source
• JPMorgan Asset Management Global Market Strategist Stephanie Aliaga suggested that tougher development requirements could benefit well-capitalized developers and lead to a shift in investment towards more welcoming regulatory environments. source
• JPMorgan Asset Management Global Market Strategist Stephanie Aliaga warned that growing public and political opposition to data centers is becoming a significant hurdle for the AI infrastructure boom. source