Goldman Sachs stated that the results of the mid-term elections in the United States mark a "blue tsunami," which could have a significant impact on the regulation of artificial intelligence and data centers.
"Since the Democrats have won far more seats in the House of Representatives and the Senate than expected, we anticipate that they will use the upcoming fiscal deadline to seek policy concessions, particularly to limit the war with Iran, remove some tariffs, and reverse the recently implemented spending cuts," said strategists at Goldman Sachs, including Jenny Greenberg.
Consistent with this view, the oil risk premium has already declined.
Nevertheless, Goldman Sachs believes that there are downside risks to Middle Eastern oil supply, which could once again drive up risk premiums.
"We also believe that the Democratic Party's victories at the state and local levels will have a significant impact on artificial intelligence and data center regulation, and our analysts think this could have a negative effect on some American utility companies/independent power producers ( IPP )."
However, Goldman Sachs expects that the importance of data center issues will "weaken" in the future, and any temporary suspension of development at these centers will be short-lived.
