AI stocks plunge post-midterms as Canada bets big on data centres

Thursday was the worst day of trading on the U.S. stock market in nearly two years. U.S. exchanges saw trillions of dollars in losses largely driven by a sell-off of tech and AI-related stocks following Democrat wins in the House and Senate — many of which campaigned against data centre buildout.

Ottawa unveiled its new budget the same day the markets saw the sharp decline, which touted building capacity needed to compete in the global AI economy and support for major investments.

KPMG’s Andrew Forde stresses factors like Canada’s cheap energy and water make building data centres here is different than in the U.S., “they’ve put in the lowest tax rate on new investment. They have set aside 500 megawatts of sovereign compute, secured through different backstops and off-take agreements.”

Nathaniel Dove looks at how concerns about the midterm outcomes may be to blame - and how that connects to Canada’s tech future.

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