Changes in the political landscape brought about by the US midterm elections may have a profound impact on artificial intelligence data center construction and the power industry. However, J.P. Morgan believes that related policy risks will not significantly change AI capital expenditure plans in the short term, and the real impact may begin to be felt in 2028. J.P. Morgan Chase released a research report on November 4 stating that the Democratic Party not only won control of the Senate and House of Representatives, but also won the gubernatorial election in important data center markets such as Texas, Georgia, New Mexico, and Nevada. As several governor-elected governors propose policies to restrict data center development, future related projects may face stricter approval, longer construction cycles, higher development costs, and more difficult financing. The bank does not expect significant changes to the 2027 data center capital expenditure plan, as most of the relevant projects have already started and most have received financing. In contrast, projects in 2028 and beyond that have yet to be approved or funded will face greater uncertainty.

Changes in the political landscape brought about by the US midterm elections may have a profound impact on artificial intelligence data center construction and the power industry. However, J.P. Morgan believes that related policy risks will not significantly change AI capital expenditure plans in the short term, and the real impact may begin to be felt in 2028. J.P. Morgan Chase released a research report on November 4 stating that the Democratic Party not only won control of the Senate and House of Representatives, but also won the gubernatorial election in important data center markets such as Texas, Georgia, New Mexico, and Nevada. As several governor-elected governors propose policies to restrict data center development, future related projects may face stricter approval, longer construction cycles, higher development costs, and more difficult financing. The bank does not expect significant changes to the 2027 data center capital expenditure plan, as most of the relevant projects have already started and most have received financing. In contrast, projects in 2028 and beyond that have yet to be approved or funded will face greater uncertainty.