Voter frustration over rising living expenses is growing as the midterm elections draw near, particularly in regions facing increasing electricity costs and debates surrounding expenses tied to energy-intensive data centers managed by major technology firms.
The surge in electricity prices has especially shaped recent gubernatorial races in New Jersey, Virginia, and Georgia, with Democrats successfully regaining seats on the utility regulatory panels. Concerns are also emerging about an artificial intelligence market bubble, as JPMorgan’s CEO Mary Callahan Erdoes highlighted an alarming concentration of AI stocks at a recent discussion, while Morgan Stanley’s Chief Investment Officer, Lisa Shalett, expressed worries regarding the market’s reliance on AI and the strong connection between the recent S&P 500 growth and data center expansions.
This past week, Wall Street experienced a decline, influenced by these AI concerns, particularly marked by prominent short-seller Michael Burry’s substantial short position on Palantir, which led to a notable drop in its stock. OpenAI’s recommendation for federal support triggered fears about companies potentially becoming “too big to fail,” contributing to the Nasdaq 100’s worst weekly performance since April, as voters recognize the financial strain of soaring electricity costs. Economic issues have emerged as key concerns in states like New Jersey, Virginia, California, and New York City, with political parties gearing up for discussions on affordability ahead of the elections.
Utilities are pursuing rate hikes exceeding $34 billion this year, impacting around 80 million Americans and generating significant hardship. In Georgia, public backlash has arisen against Republican commission members accused of supporting price increases from Georgia Power, which has also raised questions about the fairness of cost distribution for ratepayers. As midterm elections approach, issues related to escalating utility expenses and community dissatisfaction over data center projects will be in the spotlight, with rising costs attributed to modernization efforts and fluctuating natural gas prices. An Associated Press-NORC poll revealed that 36% of U.S. adults view electricity bills as a major stressor, further complicated by diverse electric rates across states and the faster rate at which for-profit utilities raise their rates compared to others.
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