Bank of America Warns AI Trade Correction Risks Global Economy

Bank of America Global Research warned on November 1, 2026, that a sustained correction in the AI trade poses a major risk to the global economy, citing concerns over the sustainability of rising capital expenditures.

This economic warning arrives as voters in 10 U.S. states decide on 41 local data-center ballot measures during November 2 midterm elections, some of which include potential construction bans. Political backlash against the industry has already impacted state leadership. Texas Governor Greg Abbott halted new data-center approvals pending an audit, and Ohio Senator Jon Husted is facing scrutiny over his previous support for the sector.

Despite the political friction, the United States Census Bureau reported that data-center construction spending reached a record annual rate of $84.95 billion in August. Goldman Sachs predicts the political focus on data centers will fade after the elections, though the firm also reports that AI adoption correlates with higher unemployment and weaker job growth in customer service and marketing sectors.