AI regulation risk will outlast the midterm elections: Raymond James

• AI regulations, including those on data centers and frontier models, will intensify regardless of the next U.S. president.
• Data center builders are accelerating projects due to concerns about future capital expenditure availability and increasing local approval requirements.
• Tech companies, especially hyper-scalers, must actively engage with policymakers and stakeholders to avoid being 'on the menu' for regulation, as smaller players may struggle to comply.
• Regulations could inadvertently create a 'moat' for larger tech companies, making it harder for smaller developers to compete.

Edward Mills of Raymond James warns that AI regulatory risks will persist beyond the midterm elections, focusing on data centers, frontier models, and national security. He advises investors to prepare for increased scrutiny and potential conditional buildouts, as current market pricing may not reflect these challenges.