Data Center Backlash Delays Affecting Nvidia
A nationwide backlash against data centers is resulting in significant delays and cancellations for new facilities, impacting companies like Nvidia (NASDAQ: NVDA), a major supplier of AI chips. Notable politicians, including Pennsylvania Governor Josh Shapiro and Texas Governor Greg Abbott, are facing criticism for their previous support for these developments as communities push back against data center deployment.
Data centers are crucial to Nvidia’s revenue, as the company acknowledges that delays in data center construction could affect the timing of its revenue. Despite this, Nvidia currently has a backlog of at least $1 trillion in orders through 2027, bolstered by $500 billion in AI chip bookings for 2025 and 2026. This strong demand positions Nvidia to weather the backlash effectively, allowing the company to shift sales to backlogged projects amid potential local cancellations.
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