In response to market concerns that U.S. data center investment might slow after the Democrats gained a lead in the midterm elections, investment firm Monolith Capital believes that AI infrastructure development will not easily end due to a change in congressional party lines. The firm points out that during the Biden administration, Democrats spearheaded the CHIPS Act, allocating approximately $52.7 billion to support semiconductor manufacturing, R&D, and the supply chain. AI and data centers now involve national security, technological competitiveness, and economic growth, possessing a bipartisan strategic nature. Therefore, even if the Democrats regain control of Congress, it does not mean that the U.S. AI capital expenditure cycle will quickly reverse.
