Infrastructure

US voters in the 2026 midterm elections voted against AI data centers in at least 38 of more than 40 ballot measures across 13 states, passing outright bans in six cities and power limits in 12. Pro-data center politicians also lost offices nationwide, including Texas Governor Greg Abbott, who was defeated by Democratic challenger Gina Hinojosa after his support for AI data centers became a central campaign issue.

Interconnects examines the scale of the open model inference market by tracking public token volume disclosures from startups like Baseten, Fireworks, and Together AI alongside OpenRouter API metrics. The available data indicates near-exponential growth in usage, including Fireworks serving over 40 trillion tokens daily for customized models alone, which the author compares against Google's reported platform token volumes.

An editorial from 404 Media reports that American voters in the November 2026 midterm elections broadly rejected candidates backed by the Trump administration and Silicon Valley executives, despite hundreds of millions of dollars in political spending from AI and crypto donors. Voters also approved 39 out of 40 local ballot measures to restrict AI data center projects and elected officials campaigning on data center moratoriums in states like Ohio and New York.

Alphabet's third-quarter earnings showed Google Search revenue growth slowing to 12 percent and paid click growth dropping to 8 percent, even as search queries rose at their fastest rate in five years. Following the report, Alphabet shares fell about 14 percent amid investor concern over the company's plans to spend roughly $200 billion on AI-focused infrastructure this year.

SemiAnalysis reports that SpaceX is rapidly constructing massive AI datacenter capacity across multiple locations, including expansions at Colossus 2 and new sites at Starbase and TeraFab in Texas, targeting roughly 13GW by 2027. To achieve record-breaking build times and bypass grid constraints, the company is utilizing modular equipment from Tesla, mobile gas turbines, and a nearly 6GWh battery energy storage system.

AI inference startup Fal raised $1.3 billion in a Series F round led by Bessemer Venture Partners, doubling its valuation to $16 billion since April. The company, which hosts video, image, and audio models, surpassed $800 million in annualized revenue earlier this year amid surging demand for running open-source models.

Facing multi-year delays for grid connections and new turbines, AI data center operators are turning to retired aircraft engines rebuilt to burn natural gas to generate electricity quickly. Companies including xAI, OpenAI, and Crusoe are deploying these converted jet engines to bring facilities online within two years, despite their lower efficiency and higher emissions.

U.S. tech giants including Google and Meta have seen their off-balance-sheet AI-related obligations grow by 90% in six months to approximately $3.2 trillion. These commitments for AI infrastructure now reach 80% of the companies' assets, raising concerns among investors over the scale of ongoing spending.

Ukrainian drone strikes have damaged Russian data centers housing AI supercomputers and disrupted cloud services operated by companies like Yandex and Sberbank. In response, the Kremlin is mandating emergency compute reserves for state needs, while Russian firms explore hiding data centers underground in mines.

Apple posted record fiscal year revenue and earnings per share, driven by strong fourth-quarter sales for the iPhone and Mac. The company is capitalizing on the AI boom while avoiding the massive infrastructure spending of its competitors, though it warned that rising memory costs could squeeze holiday quarter profit margins.

Anthropic filed an amended Form S-1 for its upcoming IPO, reporting $17 billion in third-quarter revenue and $33.24 billion in revenue for the first nine months of the year alongside a $104 billion net loss. The filing also revealed $895.4 billion in future purchase and lease commitments, nearly all of which are dedicated to compute and infrastructure.

Oracle filed plans with the SEC to issue $10 billion in common stock and $10 billion in senior notes to fund its artificial intelligence infrastructure buildout. Following the announcement, the company's shares fell 8.8% amid investor concerns over its $125.34 billion debt load and rising credit default swap spreads.

OpenAI announced a pilot "Grid Protectors Program" at an upcoming data center in Georgia, promising to free up to 1,000 megawatts of power for local communities during emergencies or extreme weather. The initiative comes amid growing local opposition across the US to the massive energy demands of new data center projects.

OpenAI details how it built Pando, a custom Git-compatible backend. The system was engineered to handle the scale of software development enabled by Codex.

SemiAnalysis examines how a growing, bipartisan political backlash against data centers in the upcoming US midterm elections threatens the 2028 infrastructure buildout. Gubernatorial candidates across major markets like Texas and Oregon are campaigning on construction moratoriums, ending tax breaks, and forcing developers to cover grid upgrade costs and report water usage.

At a Brooklyn midterm election event hosted by Newsreel, panels and attendees repeatedly focused on the growing public backlash against AI and data center construction. A recent report from Data Center Watch found that nearly $200 billion in data center projects were delayed or blocked in the first half of 2026 due to community and political opposition.

A federal judge denied xAI's motion to dismiss an NAACP lawsuit alleging the company violated the Clean Air Act by operating at least 35 unpermitted gas turbines at its Colossus data center. The court rejected xAI's arguments that the turbines are exempt as mobile sources and that citizen lawsuits are unconstitutional.

Nvidia is in talks to guarantee billions in construction debt for AI cloud provider Nscale's planned West Virginia data center, where Anthropic has signed a $44.6 billion contract for the first building. Under the proposed arrangement, Nvidia would step in and temporarily take over the facility if Nscale defaults on construction payments.

US tech stocks experienced sharp declines as investors grew concerned over the massive scale of AI capital expenditures alongside weaker-than-expected earnings. Companies including Alphabet, Intel, Amazon, and Reddit lost hundreds of billions in combined market value following warnings about rising AI infrastructure costs and disruptions to search advertising and referral traffic.

Intel's stock dropped approximately 28% after the chipmaker issued a weaker-than-expected fourth-quarter revenue forecast of $15 billion to $16 billion and warned of declining profit margins. CEO Lip-Bu Tan attributed the slowdown in PC sales to the AI industry consuming memory and other components, which has driven up hardware prices despite a 78% year-over-year growth in Intel's data center business.

Blackstone reportedly told investors that Anthropic is expected to receive a speculative "junk" credit rating in the double B range following its upcoming initial public offering. This reverses an earlier prediction of an investment-grade rating and comes amid investor concerns over the AI lab's heavy spending on compute power.

Google's satellite equipped with Tensor Processing Units (TPUs) has generated and transmitted its first responses from orbit using an on-board Gemma 4 model. The milestone is part of Project Suncatcher, an experimental initiative exploring the deployment of AI data centers in space.

An analysis by Epoch AI finds that quarterly additions to global AI computing capacity have grown about 2.5 times per year since 2024, doubling roughly every nine months. Measured in H100-equivalents across six major chip designers, quarterly sales rose from 0.8 million units in Q1 2024 to 6.3 million in Q2 2026.