Industrial Stocks Drop Amid Fears of AI Data Center Slowdown -- WSJ

By Bob Tita

Shares of industrial companies behind artificial-intelligence data center construction declined broadly on Thursday as investors signaled anxiety that the building boom will be curtailed.

Electric generator suppliers like Caterpillar, Cummins and GE Vernova saw selloffs, along with electrical equipment maker Eaton and HVAC equipment manufacturers Johnson Controls and Carrier.

Tuesday's midterm elections ushered in state and local candidates who campaigned on restricting data center construction. The buildings' electricity consumption, massive size and other environmental effects have increasingly attracted opposition from nearby residents.

Data center construction has propelled growth in the manufacturing and construction sectors in recent years, masking weaker old-line sectors such as auto and farm equipment manufacturing.

"It is going to be more difficult to get data center projects approved," said Anirban Basu, chief economist for the Associated Builders and Contractors trade group.

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November 05, 2026 19:00 ET (00:00 GMT)