Goldman Sachs says Democratic gains in the November 3 midterm elections add political uncertainty to US data center construction. The bank estimates only 50% to 60% of planned capacity will start on schedule, while the bank expects electricity demand to climb.
Goldman Sachs raised concerns over political uncertainty surrounding US data center expansion after Democratic victories in the November 3 midterm elections. The bank says the change in political leadership could affect approvals.
Democrats take both chambers and three governorships
Democrats won control of both congressional chambers and captured governorships in Texas, Georgia and Ohio that Republicans previously held. Before the vote, President Donald Trump's administration had worked to speed up data center construction by softening federal approval rules.
In July 2025, Trump issued Executive Order 14318 to expedite environmental reviews and permits for eligible projects. The order covered projects with an investment of more than $500 million or a new electricity load of more than 100 megawatts.
After the results, political control shifted in a number of states where developers are in conflict with local opposition over power costs and construction approvals.
Goldman expects power demand to climb despite delays
Goldman Sachs research puts the share of planned data center capacity that will start on schedule at 50% to 60%. However, the bank expects electricity demand to climb from 31 gigawatts in 2025 to 66 gigawatts in 2027.
Data centers are projected to account for 8.5% of peak electricity demand in 2027, compared with 4.1% in 2025. In September, Goldman Sachs listed power prices, government policy, equipment shortages and labor constraints as development challenges. Some US projects face grid connection delays lasting up to seven years.
Tech spending continues
Despite these limits, tech giants keep investing in cloud services, and AI computing capabilities continue to grow. In a separate report, Goldman Sachs estimated that AI infrastructure investment could be as high as $8 trillion in four to five years.
Source: CoinGape
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