Political opposition to data centers has intensified across U.S. states, with Texas pausing as many as 1,800 projects pending audits and Pennsylvania withholding permits until developers secure local approvals. A bipartisan backlash has emerged, with 75% of Americans now opposing data centers near their communities, up from 42% a year ago, according to Evercore ISI. The firm warns that the issue could dominate political discourse ahead of the November 3 midterms, potentially overshadowing the broader AI sector.
SpaceX’s proposed orbital computing initiative could offer a strategic alternative by generating power behind the meter and funding grid upgrades to avoid shifting costs to households. While this approach mitigates some terrestrial pressures, SpaceX may still face permitting, emissions and environmental-justice challenges, as seen in Southaven. Evercore ISI analyst Kutgun Mural noted that the political headwinds represent a headline risk rather than an earnings risk, but could still weigh on sentiment in the near term.
If SpaceX succeeds in deploying orbital compute, Evercore estimates it could gain significant advantages in cost and speed to market while avoiding the political opposition plaguing terrestrial data centers. The firm suggests that beyond 2029, no additional terrestrial capacity may be required if orbital computing scales effectively. Comparatively, shares of Siemens Energy and Sandisk have surged 231.5% and 189% respectively this year, reflecting investor interest in infrastructure plays amid rising demand for AI and data infrastructure.
