Goldman Sachs: If Democrats win a majority in both chambers of the U.S. Congress, state-level data center restrictions could affect about 45% of planned capacity.

Goldman Sachs released a research report stating that Democrats have won majority seats in both the U.S. House of Representatives and Senate, with margins far larger than expected. The larger majority advantage may give Democrats slightly more bargaining power in negotiations with the White House, but will also weaken the influence of small factions within the Democratic caucus. The bank expects Democrats to use the fiscal deadline to seek restrictions on war with Iran, roll back some tariffs, and reverse spending cuts implemented last year. Goldman Sachs noted that at the federal level, the election results are unlikely to change the outlook for data center and artificial intelligence regulation, as relevant legislation still requires bipartisan support to pass the Senate and overcome a presidential veto. However, Democratic victories at the state and local levels are expected to lead to short-term moratoriums on data center construction, potentially affecting about 45% of planned data center capacity expansion in the United States, with Texas alone accounting for about 25%. The bank expects that if Democrats reverse the spending cuts in last year's fiscal package, the increase in spending in 2027 will be equivalent to about 0.25% of GDP. The first test will come when the spending authorization expires on December 11, and the bank believes a short-term extension to February or March 2027 is the most likely scenario.