Name: Speculative builders are driving up the cost of data center construction, says Jim Cramer
Uploaded: 2026-08-24T23:37:07+00:00
Duration: 173 s

Speakers

Jim Cramer — Host, Mad Money

Summary

Jim Cramer discusses the backlash to the AI/data center boom and its market implications. He advises trimming data center-related stocks and rotating into defensive non-data-center areas such as consumer staples, healthcare, financials, retail and travel/leisure. He argues Amazon, Alphabet, Microsoft and Meta are winners because new rules and high construction costs crush smaller speculative builders.

Cramer says data center rhetoric is capping price-earnings multiples and investors should sell some data center-related stocks.
He cites outflows from SanDisk, Western Digital, Seagate and Micron as investors exit the data center theme.
He says money is rotating into Procter & Gamble, Coca-Cola, UnitedHealth, JPMorgan and Target.
He adds that healthcare and travel/leisure are also working as non-data-center destinations.
He sees Amazon, Alphabet, Microsoft and Meta as beneficiaries because they can comply with rules and build their own capacity.
He warns speculative data center builders will be hurt and their removal would reduce cost inflation.
He notes NVIDIA has fallen for seven straight days on data center slowdown worries ahead of Wednesday's earnings.

Ideas

Jim Cramer Host, Mad Money 0:05

Trim data center stocks; multiples won't expand

Investors should reduce or sell some data-center-related stocks because the political/rhetorical backlash is capping price-earnings multiples, and selling before the coming election could prove timely. He specifically notes outflows from SanDisk, Western Digital, Seagate and Micron as investors exit the data center theme.

Jim Cramer Host, Mad Money 0:25

Rotate into defensive non-data-center stocks

Money is rotating out of data center names into non-data-center groups such as Procter & Gamble, Coca-Cola, UnitedHealth, JPMorgan and Target; healthcare and travel/leisure also work because people want out of data centers and these are convenient places to put money.

Jim Cramer Host, Mad Money 0:59

Big hyperscalers win from data center pushback

Amazon, Alphabet, Microsoft and Meta are the biggest beneficiaries of the data center pushback because they can afford to comply with new rules, compensate local communities and build their own server warehouses, while speculative builders get hurt. Government regulation crushes small fry and boosts big boys, and money will rotate to these reviled hyperscalers.

This CNBC video, published August 24, 2026, features Jim Cramer discussing DATA CENTER STOCKS, SNDK, WDC, STX, MU, KO, JPM, TGT, XLV, PG, UNH, XLY, META, AMZN, GOOGL, MSFT. 3 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Jim Cramer · Tickers: DATA CENTER STOCKS, SNDK, WDC, STX, MU, KO, JPM, TGT, XLV, PG, UNH, XLY, META, AMZN, GOOGL, MSFT

Speculative builders are driving up the cost of data center construction, says Jim Cramer

Summary

Ideas

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