Jefferies sees data center opposition rising amid power demand

Jefferies warns that local opposition to data center construction in the U.S. has risen sharply — an Embold Research survey showed ~71% of respondents in May 2026 oppose nearby data centers, up from ~51% in February and ~42% in September — a trend that could slow buildouts and raise power demand and permitting risks for developers and hyperscalers. The note highlights the Midwest, Southeast, Texas and Northwest as comparatively constructive for new capacity and flags favorable attributes (lower density, lower incomes, Republican-leaning). Jefferies also commented on sector-specific moves: Talen Energy’s peaker acquisition priced at $3,145/kw (assets with long-term contracts and ~13% FCF yield) prompted a ~10% share drop, while DOE funding and Argan’s strong EPS underscore continued power-sector tailwinds. Market impact: higher local opposition increases execution risk for data center and power infrastructure names and boosts visibility for generation and services providers.