Dan Ives Says Microsoft Amazon and Meta Win Big as Data Center Slowdown Looms

This article first appeared on GuruFocus.

Dan Ives of Yorkville Ives said a potential slowdown in U.S. data center construction could favor major cloud providers with operating capacity, according to a Monday research note.

He cited midterm election results and Texas governor Gina Hinojosa’s approach to data center development, where SpaceX (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA) have large operations.

Ives estimated that 10% to 30% of planned U.S. data centers may not be built over the next 18 months under a “Blue Wave” scenario. He said firms with available gigawatts and GPUs could become more valuable. The note named Microsoft (MSFT), Amazon (NASDAQ:AMZN), Alphabet (GOOGL), Meta Platforms (META), and in some cases Oracle (ORCL) as potential beneficiaries.

Overall capital spending is still expected to reach $3 trillion to $4 trillion over the next few years, with Big Tech capex above $1 trillion next…