Goldman Sachs Warns Democratic Wins Could Threaten 45% of US Data Center Expansion
Highlights
- Goldman Sachs warns Democratic midterm victories could increase political uncertainty surrounding US data center construction.
- Trump's administration introduced faster federal approvals, while Republican-led Texas imposed new electricity grid connection requirements.
- Goldman Sachs estimates only 50% to 60% of planned data center capacity will launch on schedule.
Goldman Sachs has raised concerns over political uncertainty surrounding US data center expansion following Democratic victories in the November 3 midterm elections, as changes in political leadership could affect approvals.
Goldman Sachs Sees Political Risks For Data Center Construction
Democrats have won control of both congressional chambers and captured governorships in Texas, Georgia, and Ohio previously held by Republicans.
Prior to the elections, President Donald Trump’s administration had implemented measures to speed up data center construction by softening the federal rules for approvals.
In July 2025, Trump issued Executive Order 14318 to expedite environmental reviews and permits for eligible projects.
The order included projects with an investment in the order of more than $500 million, or a new electricity load of more than 100 megawatts.
After election results, political control shifted in a number of states where developers are in conflict with local opposition on issues of power costs and construction approvals.
A recent Goldman Sachs evaluation of seven recovery signals for US stocks focused on weakness in technology during the election.
US Data Center Electricity Demand Could Double By 2027
Goldman Sachs research has come up with a figure that 50% to 60% of planned data center capacity will start up on schedule. However, the bank expects electricity demand to climb from 31 gigawatts in 2025 to 66 gigawatts in 2027.
In comparison, the electrical power use of data centers is projected to reach 8.5% of peak electricity demand in 2027, compared with 4.1% in 2025.
Goldman Sachs listed power prices, government policy, equipment shortages and labor constraints as development challenges in September. Some US projects face electricity grid connection delays lasting up to seven years.
AI Companies Continue Investing In Computing Infrastructure
Despite these limitations, tech giants keep investing in cloud services and AI computing capabilities continue to grow.
As earlier reported by CoinGape , OpenAI’s October agreement to offer AI models through Google Cloud expanded its distribution arrangements beyond Microsoft.
In a separate report, Goldman Sachs had estimated that investments in AI infrastructure could be as high as $8 trillion in four to five years.
Goldman Sachs highlighted the financing requirements in relation to data centers, electricity network, construction and computing equipment.
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