Goldman Sachs Projects 50% Utilization Rate for U.S. Data Centers

With the Democratic Party gaining control of both the House and Senate in the U.S. midterm elections, political uncertainty surrounding the construction of artificial intelligence (AI) data centers is increasing. Goldman Sachs has projected that only 50-60% of the planned data center capacity in the U.S. will be operational as scheduled. Delays in power grid connections, rising electricity costs, and permitting issues have been identified as major obstacles. The Democratic Party not only secured control of both chambers of Congress but also won gubernatorial elections in Texas, Georgia, and Ohio, which were previously held by the Republican Party. Former President Donald Trump had expedited environmental reviews and permitting processes for large data centers, but the political shift in key state governments following this election raises the possibility of policy changes. According to Goldman Sachs, the power demand for U.S. data centers is expected to more than double from 31 gigawatts last year to 66 gigawatts next year. The share of data centers in peak power demand is also expected to rise from 4.1% to 8.5% during the same period. Major tech companies continue to invest in AI infrastructure, and Goldman Sachs estimates that investments in AI infrastructure could reach up to $8 trillion over the next 4-5 years.

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