Goldman Sachs forecasts strong US data center growth despite rising opposition
Goldman Sachs has maintained its bullish outlook on US data center growth despite rising political and community opposition. In a note released on Sunday, the investment bank revised its forecasts, raising its 2026 year-end capacity prediction by 5 gigawatts (GW) to 64 GW but slightly lowering its 2027 estimate by 5 GW to 90 GW. This adjustment reflects the growing backlash against data centers, which are essential for powering AI models but have faced criticism over their electricity demand and local impacts.
The bank emphasized that while opposition is increasing, the overall growth trajectory for US data centers remains strong. Goldman expects data center power demand to surge by 38%, or 12 GW, in 2026 and another 38%, or 17 GW, in 2027. This expansion is crucial for supporting the computing needs of major tech firms like Meta, Alphabet, Amazon, Microsoft, and Elon Musk's xAI.
A recent Reuters/Ipsos poll highlighted the public's growing discontent. Only 33% of Americans approve of the current pace of data center construction, and just 14% would support building one in their community to support AI projects. This sentiment poses a political challenge for Republicans ahead of the midterm elections on November 3.