Goldman Sachs remains bullish on US data center growth despite opposition

Goldman Sachs maintains a positive outlook on the growth of US data centers despite rising political and community opposition. The investment bank raised its 2026 year-end capacity forecast by 5 gigawatts (GW) to 64 GW, while slightly reducing its 2027 forecast by 5 GW to 90 GW. This adjustment reflects a 38% growth in power demand for both years, totaling 12 GW in 2026 and 17 GW in 2027.

The backlash against data centers stems from concerns over electricity demand, utility costs, and other local impacts. A June Reuters/Ipsos poll revealed that only 33% of Americans approve of the current pace of data-center construction. Furthermore, just 14% would support a data center in their community to support AI projects for major tech firms like Meta, Alphabet, Amazon, Microsoft, and Elon Musk's xAI.

Goldman Sachs acknowledged the growing public sentiment against data centers, stating that the opposition poses a political challenge for Republicans ahead of the US midterm elections on November 3. However, the firm emphasized that project data and updated capacity estimates suggest the growth outlook through 2027 remains largely intact.