Goldman Sachs Sees Strong US Data Center Growth Despite Opposition
Goldman Sachs has maintained its optimistic outlook on US data center growth despite rising political and community opposition. In a recent note, the investment bank raised its 2026 year-end capacity forecast by 5 gigawatts (GW) to 64 GW, though it slightly reduced its 2027 forecast by 5 GW to 90 GW. The firm predicts US data center power demand will grow by 38% or 12 GW in 2026 and another 38% or 17 GW in 2027.
Data centers, crucial for powering AI models, have faced increasing resistance from communities concerned about electricity demand, utility costs, and other local impacts. Goldman acknowledges this growing opposition but insists that the overall growth trajectory through 2027 remains intact. The firm’s updated capacity estimates and project data support this view.
A June Reuters/Ipsos poll revealed that only 33% of Americans approve of the current pace of data center construction. Additionally, just 14% of respondents 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 noted that public sentiment has turned more negative, posing a political challenge for Republicans ahead of the November 3 midterm elections.