Goldman Sachs economists estimate that Democratic gains in Texas, Michigan and Georgia could expose about 45% of planned U.S. data center capacity to policy changes, Reuters reported Nov. 4. The exposure stems from proposals that could pause new building, widen regulatory scrutiny or trim tax support. The figure describes potential risk; it does not mean that 45% of projects have been canceled or delayed.
The Associated Press reported that Democrats also won control of both chambers of Congress in the Nov. 3 midterm elections. Campaign positions in Texas and Georgia offer examples of the debate around new projects. Gina Hinojosa's campaign proposed freezing construction until state lawmakers could consider the issue, citing household utility costs and water supplies. Keisha Lance Bottoms' campaign pledged to pause new data center construction in Georgia.
Texas had moved to restrict permitting before the elections. On Sept. 21, Gov. Greg Abbott directed the Texas Commission on Environmental Quality to stop issuing data center permits while the Electric Reliability Council of Texas conducted an audit. Abbott's office told agencies to wait on related approvals until they had information to evaluate effects on grid reliability and water resources.
At the federal level, Executive Order 14318, signed July 23, 2025, called on agencies to lower barriers for qualifying data center infrastructure projects. Criteria include projects that add more than 100 megawatts of load or commit at least $500 million in capital expenditures.
Separate from the Reuters-reported policy estimate, Goldman Sachs Research forecast U.S. data center power demand at 31 gigawatts in 2025, 41 gigawatts in 2026 and 66 gigawatts in 2027. It projected data centers' share of peak summer power demand would rise from 4.1% to 8.5% over the same period.
The research group separately estimated that 50% to 60% of capacity slated for the next one to two years would come online on schedule. It cited supply-chain and labor shortages as common sources of delay and said a typical data center takes 18 to 24 months to build after obtaining permits.
