Doc's note: Anger toward data centers is rising, and several states have introduced ballot measures, some of which could limit or altogether stop new data-center projects.
As Joe Austin, from our corporate affiliate Chaikin Analytics, explains, this pushback is a major crack in the AI boom...
Two years ago, residents in a small town south of Kansas City picked a fight with a large-scale data-center developer...
And won.
Peculiar, a town of less than 6,500 residents, sent a $1.5 billion data-center project packing.
You see, data-center developer Diode Ventures eyed the town for a technology park in 2024.
The project caught backlash from the locals. Residents formed a protest group by the name of "Don't Dump Data in Peculiar."
This organized resistance led to a simple but effective change to Peculiar's rule book.
Peculiar simply banned data centers altogether.
Like I said, this happened in 2024 – before most of the country started fighting data-center development. But residents still stand by their decision today...
Resident and Alderman Robert Wells shared this feeling with a local newspaper in June 2026:
Zero, negative regret, I'm glad we did our decision.
Now more cities across the country are trying to fight these AI complexes in their communities. And they look to Peculiar for a successful playbook...
Cities Decide if AI Keeps Growing or Falters
I've watched the push against data centers grow stronger each week.
Put simply, people aren't sold on the benefits of AI. And they aren't looking to have a resource-hungry complex visible from their backyard.
This isn't a partisan issue either. Officials on both sides of the political aisle are taking hostile tones towards AI infrastructure.
Even Texas is pumping the brakes on new projects...
Last month, Texas Governor Greg Abbott called for a pause on new data centers until an audit on electrical reliability is done.
This bipartisan anger is a major issue in the upcoming midterm elections. But it doesn't matter what party wins, folks.
I expect that candidates plan to follow through on their promises to slow data centers down further.
As an investor, you can't allow your personal feelings on AI or data centers to impact your portfolio choices.
The opposition to the AI boom isn't going to calm down overnight. It poses a real risk to any investment gains you've made during the megatrend so far...
The AI Boom Won't Run Forever
And this isn't the only risk to the AI trade right now. Recently, I dug into a number of risk factors the market now faces.
What I found wasn't pretty...
In short, cracks are starting to appear in the AI boom. These cracks threaten to bring the entire megatrend crashing down.
Including any AI stocks you're holding when the market tumbles.
We can't afford to panic right now, however. Founder Marc Chaikin and I shared these discoveries last Thursday.
It's not all doom and gloom. In fact, we've uncovered a small corner of the market that we believe can weather the upcoming AI storm...
We're sharing this message entirely free of charge. Just click here to watch it now.
Good investing,
Joe Austin
