Goldman Sachs: A Democratic victory could lead to a short-term halt in approvals for U.S. data center projects

Goldman Sachs' latest report notes that Democratic control of both chambers of the U.S. Congress may not be enough to prompt the federal government to quickly tighten regulation of AI and data centers, as relevant legislation would still require bipartisan support; what truly worries the market is the Democrats' victories at the state and local levels, which could lead to a short-term halt in approvals for data center projects. Goldman Sachs estimates that some local governments may temporarily suspend approval of data center projects, potentially affecting about 45% of planned new data center capacity in the United States.