Following the Democratic Party's election victories in several states, Goldman Sachs economists Jan Hatzius and others estimated that some local governments may temporarily suspend approvals for data center projects, potentially impacting about 45% of planned data center capacity in the United States. Texas alone accounts for approximately 25% of this. Goldman Sachs predicts that Democratic governors in Texas, Georgia, and Michigan may implement conditional suspensions before new legislation is enacted. This new legislation may eliminate some tax incentives and tighten regulations on environmental protection, water, and electricity. However, Goldman Sachs judges that because data centers are a lower priority for voters in this election, the issue's importance is expected to diminish in the coming months, and even if these suspension orders are issued, they are unlikely to be long-lasting.
