Can Nvidia’s Stock Survive the Growing Nationwide Data Center Backlash? | The Motley Fool

With primary season drawing to a close, the midterm elections are heating up in earnest. And one big issue has emerged as a flashpoint in races for government offices across the country: data centers.

According to reporting from Politico, politicians such as Pennsylvania Gov. Josh Shapiro, Texas Gov. Greg Abbott, and Ohio Sen. Jon Husted are finding themselves in hot water over their past support for bringing data centers to their states. Their opponents see this as an opportunity to hammer them for an unpopular stance.

Meanwhile, communities across the country have been successfully pressuring local lawmakers and zoning boards to outlaw future data centers and even revoke data center permits that have already been approved. The backlash is expected to result in big headaches for developers and big delays in the nationwide data center build-out.

Will these delays and cancellations cause problems for Nvidia (NVDA +2.19%), the biggest beneficiary of data center spending? Could the backlash get so big that it will torpedo Nvidia’s stock price? Here’s what investors need to know.

Data centers are crucial to Nvidia’s revenue growth

In its most recent 10-Q filing, Nvidia admits, “The availability of data centers, energy, and capital to support the buildout of NVIDIA AI infrastructure by our customers and partners is crucial, and any shortage of these and other necessary resources could impact our future revenue and financial performance.” That doesn’t…