But analysts don’t expect the election to bring data center construction to a standstill. The bigger concern is that projects will take longer to get approved and cost more to build.
PIMCO’s Libby Cantrill expects “a lot more sand in the gears,” even without statewide bans, according to Sethi’s roundup of analyst reactions.
Goldman Sachs economists expect Democrats in Texas, Georgia and Michigan to impose temporary pauses on new data centers while lawmakers consider tighter rules on electricity, water use and tax breaks. They don’t expect those restrictions to last long, however, arguing that data centers aren’t a top priority for most voters.
What it means for bitcoin miners
Bitcoin miners have spent the past two years trying to turn their access to cheap power and large industrial sites into AI hosting businesses. Texas has been central to those plans.
Bernstein senior analyst Gautam Chhugani said more than half of the power capacity held or planned by the miners-turned-AI developers his firm covers is in Texas.
Investors had expected Abbott to ease restrictions on new data centers after the election, provided developers met certain conditions. Hinojosa’s victory has changed that calculation.
“We would expect the data center pause to continue and any data center potential legislation to remain in gridlock,” Chhugani wrote in a research note.