Oct 25, 2026 · 33 min
Data-centre backlash tests AI infrastructure’s growth story
Data centre backlash grows, the latest on our Community Portfolio & Pimp my Portfolio with Henry Jennings
The episode connects local resistance to data-centre expansion with portfolio decisions about concentration, diversification and thematic investing.
- 1Data-centre projects face growing opposition when grid demands and local benefits fail to align with community expectations.
- 2Tesla and SpaceX could combine complementary ambitions, but the proposed merger raises questions about strategy, valuation and execution.
- 3Henry Jennings finds overlapping ETFs in Francesco’s portfolio and recommends deliberate simplification rather than automatic accumulation.
Don't miss
Henry Jennings turns an ETF-heavy portfolio review into a broader lesson about overlap, concentration and deliberate rebalancing.
The brief
NextDC’s 42% one-day plunge exposes the political and community risks behind AI’s expanding infrastructure needs, as data-centre developers seek power, approvals and social licence.
The discussion widens from Australian opposition to US resistance, then considers whether falling AI costs and new applications could keep demand growing despite the backlash.
The hosts examine a possible Tesla–SpaceX merger, weighing Tesla’s weakening vehicle business against SpaceX’s growth and the strategic appeal of combining robotics, autonomy and aerospace.
The community portfolio remains largely unchanged after a review against DHHF, with the hosts resisting short-term reactions to weakness in AI infrastructure and recently discussed stocks.
Henry Jennings helps Francesco simplify an ETF-heavy portfolio by identifying overlap around DHHF, IVV and VAS, while treating thematic exposure and dollar-cost averaging as active choices.
What was said on this episode
22 statements · 9 positive · 9 negative · 1 mixed · 3 neutral
NextDC’s power-pole backlash contributed to its share-price decline
“this is due to community backlash over 22 metre concrete power poles”
Listen at 0:04
Data-centre businesses face substantial execution risk delivering projects
“the execution risk for these businesses to actually get these projects up and running is so big”
Listen at 4:31
Australian data centres should offset peak power use at twice their maximum level
“if you want to build a data centre in Australia, you have to bring... two times your max power usage”
Listen at 5:23
AI used in data centres will eliminate more jobs than data centres create
“I think the AI in the data centre is going to remove a lot more jobs than the data centre.”
Listen at 6:05
New York State imposed a one-year data-centre moratorium
“New York State has a one-year moratorium on data centres.”
Listen at 6:40
Falling AI costs enable additional use cases
“as costs fall, that opens up new use cases”
Listen at 10:07
Some data centres are difficult to build, constraining AI compute
“the data centers are struggling to get built in some cases”
Listen at 10:15
A SpaceX–Tesla merger could provide some protection for Tesla
“merging with SpaceX protects Tesla a little bit”
Listen at 11:25
Tesla’s global vehicle market share fell from about 20% to 13%
“global market share's dropped from about 20% to 13%”
Listen at 11:49
Tesla’s future is increasingly tied to AI through a merger
“the future is a lot more tied to ai”
Listen at 12:32
SpaceX’s valuation exceeded $2 trillion after its earnings update
“SpaceX is now back above a two trillion dollar valuation”
Listen at 15:06
The Equity Mates community portfolio gained 7.5% year to date
“our portfolio up 7.5”
Listen at 16:55
The electric-vehicle market currently faces intense price competition
“there is a brutal price competition going on in that market at the moment”
Listen at 19:26
Hub24 benefits from structural growth while the 12% superannuation guarantee remains
“Structural growth story until... Until the superannuation, 12% guarantee changes, money just flows into these people.”
Listen at 21:50
AI infrastructure market froth will eventually dissipate or a bubble will burst
“At some point, a bubble will pop or the froth will shake out of the market.”
Listen at 23:09
Francesco’s portfolio allocates 36% to Europe, Asia and emerging markets
“36% of your portfolio is in that”
Listen at 26:19
The United States represents about 75% of global market capitalization
“the US is around 75% of the global market”
Listen at 26:24
Cybersecurity exposure is becoming increasingly relevant
“the cyber security side of things, I think, is becoming more and more relevant”
Listen at 27:26
IVV and VAS may be redundant alongside DHHF
“they are a little bit surplus to requirement”
Listen at 28:47
Selling IVV and VAS to buy DHHF could simplify the portfolio
“that could well be the play. It would simplify things dramatically”
Listen at 29:21
Investors should periodically reassess DCA and dividend-reinvestment choices
“don't just dollar cost average or DRP. blindly make sure they're conscious decision choices”
Listen at 30:50
Francesco should continue dollar-cost averaging and dividend reinvestment for now
“as far as here and now goes, I would say dollar cost averaging and DRPs would serve you well to keep going”
Listen at 31:10
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
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