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[Democratic Governing Electoral Victory Exacerbates Concerns About Data Center Oversight, Widening Divergence in AI Deals] (1) The Democratic victory in the key gubernatorial election has increased the likelihood of stricter scrutiny of data center projects and exacerbated investor concerns about the speed of new capacity construction and financing capabilities. (2) In Texas, Democratic-elect Gina Hinojosa proposed a statewide suspension of new data center permits, but projects under construction are reportedly exempt. (3) JPMorgan Managing Director James Sullivan stated that differences in borrowing costs are key to the divergence in AI deals: new cloud service providers have significantly widened their spreads, with additional capital costs far exceeding those of hyperscale cloud service providers, which have more diversified customer and revenue streams; the market believes that limited incremental supply makes existing capacity more valuable. (4) Regarding data center risks, BMI warned that a sharp slowdown in data center construction and AI investment could lead to a larger-than-expected decline in overall investment; most of the capacity expected to come online in 2027 is already under construction, limiting the near-term impact of new restrictions. (5) Nomura stated that projects planned for launch in 2028 are more susceptible to licensing delays and regulatory uncertainty; from 2028 onwards, stricter regulations on data center construction may become a more significant headwind for AI investment. (6) Regarding the AI financing gap, the stock prices of Nvidia-backed CoreWeave, Nebius, and Iren fell by at least 30% in October, and the tightening of the credit market has led to market skepticism about financing for AI infrastructure projects; CoreWeave's five-year credit default swap spread has soared to over 1,100 basis points. (7) JPMorgan Asset Management stated that the key difference lies in the company's ability to absorb delays and finance its capacity building; hyperscale cloud service providers have a broader cloud business and internal cash flow, while newer cloud service providers with lower ratings are more susceptible to borrowing costs, energy prices, and refinancing conditions; if weaker operators scale back, financially stronger hyperscale cloud service providers may obtain cheaper capacity or acquire assets.