Think data centers harm the environment and want new construction banned? Great. Hyperscalers may thank you.
By Vlad from Bastion on
Morgan Stanley reached this counterintuitive conclusion.
Public opposition to data centers is remarkably broad. Seven in ten Americans oppose construction in their local area, and politicians are listening.
Projects worth an estimated $156 billion were cancelled or delayed in 2025. Another $130 billion was affected in the first quarter of 2026.
Demand for computing power already exceeds available supply. Slower capacity growth would deepen the shortage. This would increase the value of hyperscalers’ existing infrastructure and strengthen their pricing power.
Companies that have already built massive data center networks could benefit from tighter restrictions. They would spend less on expansion while the value of computing capacity rises.
If the build-out slows, own the high-quality hyperscalers whose installed compute becomes scarcer and more valuable.
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