Goldman Sachs CEO David Solomon says blocking the US data center buildout would push AI computing capacity overseas. The warning lands after Democrats midterm wins fueled calls to pause new data center approvals.
Investors dumped AI and data center stocks last Thursday on fears that a Democratic Congress could curb construction. The Nasdaq slid 11% below its record high in its worst session since April 2025.
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Is the Data Center Backlash Louder Than It Is Real？
Speaking to CNBC‘s Leslie Picker at the bank’s 25th annual alternative summit, Solomon said opposition is not universal. Some states value the economic benefits of infrastructure investment, he said.
He urged separating political noise from substantive policy, noting that state and local decisions will shape much of the outcome.
The election results, however, complicate that view. Democrats won governorships in Texas and Georgia after campaigning partly on a moratorium on new data centers, it was reported. As many as 32 of 34 winning governors back stricter data center rules, .
It was also reported that Goldman analysts see short-lived halts that could affect 45% of planned US capacity expansion.
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Sen. Bernie Sanders has since demanded a national data center moratorium. A presidential veto and party divisions could limit it.
What Is at Stake if the Buildout Stalls？
Solomon compared the debate to nuclear energy, saying 50-year-old policy choices would probably be made differently today.
He said data centers supply computing power to US businesses. Blocked projects would shift the buildout outside the US.
He added that he had warned in June that AI infrastructure growth would not follow a straight line.
“I‘m optimistic there’ll still be a significant amount of investment in data centers and compute capacity in the United States.”
David Solomon, CEO of Goldman Sachs, speaking to CNBC
Thursdays AI stock selloff showed how quickly markets price political risk into the buildout. State-level moratorium fights could decide whether AI spending slows or shifts abroad.