The artificial intelligence infrastructure boom is facing a sharp reality check after the US midterm elections, as investors reassess the political and physical risks behind record capital commitments. Funds run by Brookfield, Macquarie and KKR raised close to $300 billion in 2025, while physical AI startups attracted another $47.4 billion in the first half of this year, according to data cited in industry reports. That wave of capital is now under scrutiny after Democrats gained governorships in data-center hubs such as Texas, Ohio and Georgia, and voters backed restrictions on new facilities. The result was a broad sell-off in chipmakers and data-center operators, with the Nasdaq entering correction territory and roughly $2.5 trillion in market value erased.
Beyond politics, the article highlights a deeper valuation problem: much of the infrastructure backing AI and traditional assets is priced on outdated condition data. Most US bridges are inspected every two years, while rating firms such as Fitch and S&P Global price physical hazards with snapshots that may miss recent damage. The author, Saar Dickman, CEO of Dynamic Infrastructure, points to an Alabama bridge rated seven out of nine even as satellite radar showed adjacent ground sinking. He argues investors should demand better current condition data, especially for power, water, land and grid connections supporting data centers.
Amid the sell-off, Wedbush analyst Dan Ives is taking a contrarian stance, calling the rout a “golden buying opportunity.” He believes the market is pricing in a near-total stop to AI infrastructure expansion, which he considers unlikely. Instead, Ives sees a moderation in growth rather than a reversal, with committed projects already holding permits and financing. He estimates AI-related capital spending could still reach $3 trillion to $4 trillion in the coming years, and compares the current panic to past overreactions including the 2020 COVID crash and the April 2025 tariff shock.
The crypto market has no direct exposure to the named equities, but the risk-off tone in high-growth technology assets could weigh on digital-asset sentiment. No specific cryptocurrency is directly tied to the developments.
