Bank of America Securities: The Democratic Party dominates the US Congress data center regulation and becomes the focus

The Zhitong Finance App learned that Bank of America Securities released a research report saying that mainstream US media have determined that the Democratic Party will win in both the Senate and House of Representatives. It is expected that the Democratic Party will strengthen hearings and supervision of various federal policies, but since the President has veto power, there will be limited legislative changes in the next two years, but they may have a substantial impact on data center construction and social media regulation.

The bank pointed out that given the unprecedented scale of capital expenditure planned by large technology companies, data center supervision may become the focus of post-election policies. New federal regulations are expected to face a presidential veto, but the Democratic Party won in key data center states such as Texas, or may limit the rate of future expansion. The bank believes that although plans to increase production may continue in the next 12 months, hyperscale data centers can also shift to states with high acceptance levels, but the market may view rising construction costs and future expansion as a risk of artificial intelligence innovation and industry revenue.

Regarding social media regulation, child safety is already a common concern of both parties. There are limited changes in federal policy in the short term, but state-level regulations and lawsuits may become a risk in the near future. As for antitrust, the bank believes that since the Federal Trade Commission and the Department of Justice will continue to be led by the Trump administration, the possibility of major changes is low. Also, in terms of tariffs, there are no major changes to the current e-commerce tax pattern.