--- title: "NVDA, MSFT, and GOOGL Stocks Face a New AI Risk as Data Center Backlash Mounts" type: "News" locale: "en" url: "https://longbridge.com/en/news/287059303.md" description: "The AI sector, while still seen as a growth driver by Wall Street, faces increasing local pushback against data center expansions, which are crucial for AI development. Reports indicate that towns are blocking or slowing down significant data center projects, raising costs and approval challenges. This shift in sentiment could impact major tech firms like Nvidia, Microsoft, Amazon, and Alphabet, as the next phase of AI investment may hinge on public trust and local regulations rather than just demand for AI tools." datetime: "2026-05-20T11:48:28.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/287059303.md) - [en](https://longbridge.com/en/news/287059303.md) - [zh-HK](https://longbridge.com/zh-HK/news/287059303.md) --- # NVDA, MSFT, and GOOGL Stocks Face a New AI Risk as Data Center Backlash Mounts Wall Street still sees AI as one of the strongest growth themes in the market. Yet outside the stock market, the mood is starting to shift. A new report shows that the AI boom is now facing more pushback from voters, towns, workers, and power users across the U.S. ### Claim 55% Off TipRanks 200% short exposure to AMZN with AMZO This is a development that retail investors cannot ignore, because AI is becoming more than just a tech story; it is also a power bill, a job, a data center, and a local politics story. The main risk is not that AI demand will fade soon. Rather, the risk is that the buildout needed to support AI may become slower, more costly, and harder to approve. ## **Data Centers Are Becoming a Weak Spot** The AI trade depends on large data centers, which require substantial power. That has helped fuel demand for chips from Nvidia (NVDA), the chip maker that leads the AI chip market, and cloud growth at Microsoft (MSFT). It also supports Amazon (AMZN), the e-commerce and cloud leader behind AWS, and Alphabet (GOOGL), the parent company of Google and Google Cloud. However, the report shows that local pushback is rising fast. Some towns are trying to block new data centers. In Festus, Missouri, voters removed four city council members one week after they backed a $6 billion data center. The report also said local groups blocked or slowed at least 48 data center projects worth about $156 billion last year. This creates a new layer of risk for investors. If data centers take longer to build, cloud firms may face higher costs and slower growth in AI capacity. At the same time, firms tied to power, cooling, and grid gear may still gain from the trend, but they may also face more rules and more local pushback. ## **The AI Trade May Need a New Lens** The report also points to a broader trust issue. Former Google Chief Executive Eric Schmidt was booed during a speech after he spoke about the scale of AI change. One pollster quoted said, "I don't think I've ever seen something intensify this quickly." That does not mean the AI trade is over. Far from it. Nvidia, Microsoft, Amazon, Alphabet, and other large tech firms still have strong balance sheets and deep demand for AI tools. Oracle Corporation (ORCL), the cloud and data firm, is also tied to the buildout, while Equinix Inc. (EQIX), a global data center owner, and Digital Realty Trust (DLR), a data center real estate trust, remain key names to watch. Still, investors may need to look beyond chip sales and cloud demand. The next phase of AI investing may also depend on access to power, local votes, permits, and public trust. The key takeaway is fairly simple. AI remains a major growth story, but it is no longer a smooth one. For retail investors, the next AI risk may not come from weak demand. It may stem from public pushback against the real-world costs of building the AI economy. We used TipRanks' Comparison Tool to align all the AI-related stocks appearing in the piece. It's a great tool to gain an in-depth view of each stock and the broader AI industry. ### Related Stocks - [AMZN.US](https://longbridge.com/en/quote/AMZN.US.md) - [GOOGL.US](https://longbridge.com/en/quote/GOOGL.US.md) - [MSFT.US](https://longbridge.com/en/quote/MSFT.US.md) - [NVDA.US](https://longbridge.com/en/quote/NVDA.US.md) - [SOXX.US](https://longbridge.com/en/quote/SOXX.US.md) - [NVDU.US](https://longbridge.com/en/quote/NVDU.US.md) - [CLOU.US](https://longbridge.com/en/quote/CLOU.US.md) - [DTCR.US](https://longbridge.com/en/quote/DTCR.US.md) - [SRVR.US](https://longbridge.com/en/quote/SRVR.US.md) - [MSFO.US](https://longbridge.com/en/quote/MSFO.US.md) - [NVDY.US](https://longbridge.com/en/quote/NVDY.US.md) - [SOXL.US](https://longbridge.com/en/quote/SOXL.US.md) - [PSI.US](https://longbridge.com/en/quote/PSI.US.md) - [NVDX.US](https://longbridge.com/en/quote/NVDX.US.md) - [XSW.US](https://longbridge.com/en/quote/XSW.US.md) - [AMZU.US](https://longbridge.com/en/quote/AMZU.US.md) - [GGLL.US](https://longbridge.com/en/quote/GGLL.US.md) - [MSFU.US](https://longbridge.com/en/quote/MSFU.US.md) - [AMZZ.US](https://longbridge.com/en/quote/AMZZ.US.md) - [SMH.US](https://longbridge.com/en/quote/SMH.US.md) - [XSD.US](https://longbridge.com/en/quote/XSD.US.md) - [MSFX.US](https://longbridge.com/en/quote/MSFX.US.md) - [IGV.US](https://longbridge.com/en/quote/IGV.US.md) - [NVDL.US](https://longbridge.com/en/quote/NVDL.US.md) - [GOOG.US](https://longbridge.com/en/quote/GOOG.US.md) - [AMZO.US](https://longbridge.com/en/quote/AMZO.US.md) - [ORCL.US](https://longbridge.com/en/quote/ORCL.US.md) - [EQIX.US](https://longbridge.com/en/quote/EQIX.US.md) - [DLR.US](https://longbridge.com/en/quote/DLR.US.md) - [NVD.DE](https://longbridge.com/en/quote/NVD.DE.md) - [ORCL-D.US](https://longbridge.com/en/quote/ORCL-D.US.md) ## Related News & Research - [Microsoft Stock Is a Buy as Its AI Business’ Annual Revenue Run Rate Swells](https://longbridge.com/en/news/286451364.md) - [Nvidia set for pivotal earnings amid AI spending boom](https://longbridge.com/en/news/287096632.md) - [Cerebras Systems Is Being Called the Next Nvidia, But 2 Surprising Details Change the Story](https://longbridge.com/en/news/287056858.md) - [NVIDIA CEO Jensen Huang at Dell Technologies World: “Demand Is Going Parabolic, Utterly Parabolic”](https://longbridge.com/en/news/286825813.md) - [Nvidia’s AI Lead Is Back in Focus as Wolfe Research Doubles Down](https://longbridge.com/en/news/286680544.md)