Cramer calls political opposition a risk to data center construction in the US
Political and public opposition to new data centers in the US could become a greater risk to the development of artificial intelligence infrastructure than demand for it. Jim Cramer writes about this in a CNBC column. In his view, investors are concerned not about weak demand, but about the possibility that political decisions and community opposition will complicate the implementation of new projects.
Micron ramps up memory production
According to Cramer, demand for DRAM memory for data centers remains high. Around 9,000 people are working six days a week to launch full-scale chip production at two Micron plants in Boise, Idaho, in the first quarter of 2027.
Micron is also building two plants in Clay, New York, near Syracuse. The company plans to invest $100 billion in the New York project over ten years, while the US government contribution is expected to total $6 billion under the CHIPS and Science Act.
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Cramer notes that Micron CEO Sanjay Mehrotra seeks to increase chip shipments for data centers and compete with Samsung and SK Hynix. At the same time, in the author's view, Sandisk, Western Digital and Seagate are in no hurry to invest in new capacity, as previous production expansions led to excess supply and falling profits.
Risks for data centers
Cramer writes that authorities in Texas and Pennsylvania have taken measures that could slow the development of data centers. At the same time, Virginia, where around 250 such facilities are already operating, may accept new projects. The author believes that companies in the industry need a common code of conduct that would prioritize cooperation over competition.
According to Cramer's assessment, the political backdrop has heightened investor concerns about companies linked to data center expansion, including GE Vernova, Broadcom, Corning, Qnity Electronics and Intel. At the same time, he said he sees no order cancellations at GE Vernova, while strong demand for Micron's products supports his confidence in the further development of AI infrastructure.
