While the Democrats’ dramatic sweep of the Midterm elections will likely lead to heightened restrictions on data center construction and the projected implications for the market are still hazy, putting a damper on that proliferation could actually create opportunities, market participants told 9fin.
Dozens of newly elected Democrats at the state and federal level ran on platforms opposing data center development, raising the specter of a broad clampdown on new building in the sector.
Data center players have already faced a series of election related setbacks. There were 45 ballot measures across the country related to data center regulations, and in all but one instance voters opted to restrict development or ban them altogether, according to a website tracking the legislation.
Things could get worse: Goldman Sachs estimates that Democrats hold the power to curtail development in states that account for roughly 45% of all planned data center developments, as 9fin reported. Newly elected governors in Texas, Georgia, Ohio and Michigan all ran in opposition to new data center developments, as did several candidates for the House and Senate.
Data center doom?
The toll on data center construction could easily tamp down the volume of new-issue...
