Data center concerns prompt stock reactions, new Utility proposal

Following these votes, Venture Global (NYSE:VG) announced plans for an off-grid AI utility specifically designed for data centers, resulting in a 7.1% premarket increase in its share price to $12.64. In contrast, Vertiv (NYSE:VRT), a provider of power and cooling equipment for data centers, saw a slight premarket dip of 0.2% to $200.03.

Governors-elect in Texas, Georgia, and Ohio, states collectively holding approximately 173 GW of planned data center capacity, campaigned against data center development. These states represent roughly 39% of the U.S. data center pipeline, with 14.2 GW already under construction. Any executive actions would be delayed until at least January. Utility regulators are also considering measures to require data centers to secure their own power sources.

Venture Global’s initiative involves frame agreements with GE Vernova (NYSE:GEV) and Baker Hughes (NASDAQ:BKR) Energy Services for up to 16 power islands, along with transformer and grid equipment. The company aims to begin delivering computing capacity by late 2028 and reach 5 GW by the end of 2031, though specific customer details, contracts, pricing, and capital budgets remain undisclosed.

Despite the political headwinds, a panelist on CNBC Fast Money expressed optimism about Vertiv, noting its doubled orders and 61% revenue increase. Vertiv’s recent earnings report confirmed a 61.18% revenue increase and organic order growth exceeding 100%, but the stock has fallen 17.6% since October 9, 2026.

Analysts at IIR anticipate continued data center construction, albeit potentially at a slower pace, with developers focusing on community engagement. Venture Global’s proposal, while addressing concerns about electricity costs, still requires local land-use approval, similar to the approvals voters recently rejected. Furthermore, Venture Global faces competition from companies like Vertiv, which acquired Utility Innovation Group, a specialist in microgrids and on-site power systems.

Key factors to watch include Venture Global securing a data center customer, actions taken by the new governors of Texas, Georgia, and Ohio after January, and the results of upcoming local data center votes in Arkansas and North Dakota.