Goldman Sachs said the US midterm election results marked a “blue tsunami” that could have a significant impact on artificial intelligence and data center regulation. “As Democrats have won far more than expected majorities in both the House of Representatives and the Senate, we expect them to use the upcoming fiscal period to seek policy concessions, particularly limiting the war on Iran, removing some tariffs, and reversing recently implemented spending cuts,” Goldman Sachs strategists including Jenny Greenberg said. Consistent with this view, the oil risk premium has declined. Despite this, Goldman Sachs believes there is a downside risk to Middle Eastern oil supply, which may once again push up the risk premium. “We also believe that the Democratic Party's victory at the state and local levels will have a significant impact on artificial intelligence and data center regulation, and our analysts believe this may have a negative impact on some US utility/independent power producers.” However, Goldman Sachs expects the importance of data center issues to “lessen” in the future, and any suspension measures to develop these centers will be short-lived.

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