After the U.S. midterm elections, anti-data center forces are gaining ground, putting pressure on Asian AI chip stocks.

November 4 — Democrats achieved a major victory in the U.S. midterm elections, with multiple candidates who explicitly oppose data center expansion elected as governors, sparking market concerns about a slowdown in U.S. AI infrastructure investment. Asian chip stocks came under pressure on Wednesday, with Samsung Electronics, SK Hynix and other companies facing the risk that demand for server DRAM and high-bandwidth memory (HBM) may be affected.

Opposition to data centers is mainly concentrated on issues such as noise, water consumption, energy consumption and driving up residents' electricity bills. The market worries that local governments may tighten project approvals on grounds of power supply, environmental protection and AI safety, causing delays to new data center construction. However, analysts believe regulation will not necessarily directly lead to a contraction in investment scale, and tech companies may also turn to building their own power and supporting infrastructure.

For Korean companies, the election results have mixed implications. Democratic control of Congress may check the Trump administration's moves to cut subsidies under the CHIPS and Science Act, which is positive for Samsung and other companies investing in the U.S.; clean energy tax credits are also expected to be restored, and solar companies such as Hanwha Solutions may benefit. At the same time, auto tariffs are expected to see little easing, while the Korea-U.S. shipbuilding cooperation framework is expected to continue.