Election Day Meets the Data Center Boom: Democrats’ Win Could Put 45% of Expansion on Ice

Goldman Sachs has warned that Democratic victories in the November 3 midterm elections could threaten 45% of planned US data center expansion by creating uncertainty around federal approvals and state-level electricity policies. Democrats won control of both congressional chambers and the governorships of Texas, Georgia, and Ohio, which had previously been held by Republicans.

Before the elections, President Donald Trump’s administration sought to accelerate data center construction by relaxing federal approval rules. In July 2025, Trump issued Executive Order 14318 to expedite environmental reviews and permits for eligible projects, including those with investment of more than $500 million or a new electricity load of more than 100 megawatts.

Political control shifted in states where developers are already facing opposition over electricity costs and construction approvals. Goldman Sachs research estimates that only 50% to 60% of planned US data center capacity will launch on schedule, while also examining technology-sector weakness through seven recovery signals for US stocks.

The developments add a new layer of uncertainty to the data center buildout supporting cryptocurrency and technology infrastructure. With energy demand rising and permitting conditions changing after the election, the pace of new capacity remains dependent on political decisions at both the federal and state levels.