OpenAI Urges U.S. to Expand Chips Act Credit to Data Centers — Potential Market Winners
Key Development:
OpenAI asked the U.S. government to broaden the Advanced Manufacturing Investment Credit (AMIC) — a 35% tax credit originally tied to the Chips Act — to cover AI servers, data centers, and grid components.
The company’s letter, signed by Chief Global Affairs Officer Chris Lehane and sent to White House tech policy head Michael Kratsios, argues that expansion “will lower the effective cost of capital, de-risk early investment, and unlock private capital.”
OpenAI asked the U.S. government to broaden the Advanced Manufacturing Investment Credit (AMIC) — a 35% tax credit originally tied to the Chips Act — to cover AI servers, data centers, and grid components.
The company’s letter, signed by Chief Global Affairs Officer Chris Lehane and sent to White House tech policy head Michael Kratsios, argues that expansion “will lower the effective cost of capital, de-risk early investment, and unlock private capital.”
OpenAI also called for faster permitting and a strategic reserve of raw materials such as copper, aluminum, and rare earths critical to AI infrastructure.
CEO Sam Altman later clarified that OpenAI “does not have or want government guarantees” but supports credits for data center infrastructure.
CEO Sam Altman later clarified that OpenAI “does not have or want government guarantees” but supports credits for data center infrastructure.
Market Takeaway:
A potential 35% U.S. federal tax credit for data centers would materially cut capital costs for AI infrastructure buildouts.
Effectively, it would expand the Chips Act beyond semiconductors into AI hardware and energy infrastructure — positioning U.S.-based buildouts ahead of global peers.
A potential 35% U.S. federal tax credit for data centers would materially cut capital costs for AI infrastructure buildouts.
Effectively, it would expand the Chips Act beyond semiconductors into AI hardware and energy infrastructure — positioning U.S.-based buildouts ahead of global peers.
Winners:
- U.S. Data Center REITs: Digital Realty (DLR), Equinix (EQIX), CyrusOne (CONE) — Lower effective CAPEX, faster project IRRs, likely multiple expansion as U.S. buildout accelerates.
- Power & Grid Infrastructure: Eaton (ETN), ABB (ABB), Schneider Electric (SU FP), GE Vernova (GEV) — Demand surge for transformers, switchgear, copper-heavy equipment.
- Construction & Engineering Contractors: Fluor (FLR), Jacobs (J), AECOM (ACM) — Pipeline of AI-related infrastructure could expand materially.
- AI Hardware Supply Chain: NVIDIA (NVDA), AMD (AMD), Broadcom (AVGO) — Potential downstream uplift from accelerated domestic data center deployment.
Relative/Pair Trades:
- Long data center REITs / Short global peers without U.S. tax exposure.
- Long U.S. grid-equipment suppliers / Short European industrials with higher cost base.
- Overweight AI-infrastructure plays with U.S. CAPEX exposure / Underweight software-heavy hyperscalers where marginal benefit is smaller (MSFT, AMZN, GOOGL).
Valuation Impact (Scenario):
For a $1B U.S. data center project, the 35% tax credit effectively cuts net cost to $650M → IRR improvement of ~200–300bps depending on financing.
That could lift valuation multiples by 10–15% across listed U.S. data center operators and construction peers if policy passes.
For a $1B U.S. data center project, the 35% tax credit effectively cuts net cost to $650M → IRR improvement of ~200–300bps depending on financing.
That could lift valuation multiples by 10–15% across listed U.S. data center operators and construction peers if policy passes.
Catalysts:
- Draft legislation expanding AMIC coverage (watch for Congressional language).
- Press releases citing AMIC credit in U.S. data center build announcements.
- Supplier backlog data (transformers, copper cabling) showing U.S. demand spike.
Risks:
- Policy stall or partial implementation in Congress.
- Overbuild risk → excess compute capacity compressing margins.
- Supply chain delays: transformer bottlenecks, copper shortages.
- Elevated financing costs could offset part of tax relief.
Bottom Line:
Expansion of the Chips Act credit to AI data centers would act as a major fiscal tailwind for U.S. data center infrastructure and grid-equipment providers.
Trade skew: Long infrastructure buildout and REITs; short global peers and overexposed hyperscalers.
Expansion of the Chips Act credit to AI data centers would act as a major fiscal tailwind for U.S. data center infrastructure and grid-equipment providers.
Trade skew: Long infrastructure buildout and REITs; short global peers and overexposed hyperscalers.
Source: OpenAI letter (Oct. 27 2025); Reuters (Nov 7 2025)