- Political uncertainty could threaten 45% of planned US data centre expansion.
- US data centre power demand could rise from 31 GW in 2025 to 66 GW by 2027.
- Only 50% to 60% of planned data centre capacity may launch on schedule.
Goldman Sachs has expressed worries about the future of US data centre construction. Changes in leadership might make it harder to get project approvals and could slow down development timelines.
The report shows that Democrats won races in the November 3 midterm elections. This has changed control in key places like Texas, Georgia, and Ohio. These changes might affect choices about construction permits, electricity costs, and building new infrastructure.
Before the elections, the administration of President Donald Trump took steps to speed up data centre projects. An executive order from July 2025, called Executive Order 14318, was meant to make reviews and permits faster for projects that meet certain requirements. These include investments over $500 million or projects that add more than 100 megawatts of electricity demand.
Even with efforts from the federal government to speed up approvals, local resistance and infrastructure problems might still be a challenge.
US Data Centre Power Demand Could Double By 2027
Goldman Sachs says that about half to three-fifths of the planned data centre capacity might actually be ready on time. This points to execution risks for developers.
The bank expects electricity use by data centres in the United States to grow from 31 gigawatts in 2025 to 66 gigawatts by 2027. By that year, data centres could make up 8.5% of the nation’s peak electricity demand compared to 4.1% in 2025.
GOLDMAN SACHS: DEMOCRATIC WINS COULD THREATEN 45% OF US DATA CENTER EXPANSION
Goldman Sachs warns that Democratic victories at state and local levels could trigger temporary data-center construction moratoria.
🔸 45% of planned US data-center capacity could be affected.
🔸 Texas alone accounts for roughly 25% of planned capacity.
🔸 Texas, Georgia and Michigan could introduce restrictions on tax breaks, electricity, water and environmental permits.
However, Goldman expects any moratoria to be short-lived, with political pressure easing over time.
— *Walter Bloomberg (@DeItaone) November 4, 2026
Getting power is still a big problem. Goldman Sachs lists electricity prices, changes in government policy shortages of equipment and a lack of skilled workers as major roadblocks.
Some projects also face delays in connecting to the power grid up to seven years in some cases. These delays could push back opening dates. Make development more expensive.
AI Infrastructure Investment Continues Despite Uncertainty
Despite these challenges, major technology companies continue expanding their cloud computing and AI infrastructure capabilities.
OpenAI’s October agreement to offer its AI models through Google Cloud illustrates how providers are broadening their distribution arrangements beyond existing partnerships.
Goldman Sachs has also estimated that AI infrastructure investment could reach $8 trillion over four to five years, encompassing data centres, electricity networks, construction and computing equipment.
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