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2026-11-05 11:56:26
[Goldman Sachs: Midterm Election "Blue Tsunami" May Significantly Impact AI and Data Center Regulation, But Development Suspension Expected to be Short-lived] (1) Goldman Sachs says the US midterm election results are a "blue tsunami" that could have a significant impact on artificial intelligence and data center regulation. (2) Strategists including Jenny Grimberg wrote in a report that given the Democrats' much larger-than-expected majority in the House and Senate, they expect the Democrats to use the upcoming fiscal deadline to seek policy concessions, especially limiting the war with Iran, removing some tariffs, and overturning recent spending cuts. (3) Consistent with this assessment, oil risk premiums have declined; however, Goldman Sachs believes there is a downside risk to Middle Eastern oil supply, which could push risk premiums up again. (4) Goldman Sachs also believes that the Democratic victory at the state and local levels will have a significant impact on artificial intelligence and data center regulation; its equity analysts believe this could negatively impact some US utility companies and independent power producers. (5) However, Goldman Sachs expects the importance of data center issues to "diminish out" in the future, and any development suspension will be short-lived.
