Democrats won control of the House and the Senate on November 3 and flipped the governorships of Texas, Georgia, Ohio, Nevada, and Iowa. Energy was a central issue in many of these races, particularly the cost of electricity and the growth of data centers.
Power prices have risen in many states in recent years. Data centers add to that pressure because they need large amounts of new generation and grid upgrades, and candidates in several states campaigned on who should pay for them.
Voters also weighed in on data centers directly. More than 45 ballot initiatives on the topic were on the ballot, and nearly all of them went against data centers. The scale of data center buildout makes these results important for the energy markets. Forecasts before the election put US data center capacity at 30 to 35 gigawatts (GW) in 2030, and much of that capacity sits in states where the election changed who writes energy law, appoints utility regulators, and approves data center permits.
Clients across oil and gas, power, and chemicals have asked us what this means for their business. We looked at the questions they raised most often:
- How much can a divided Washington change federal energy law, and what can Congress do with its new powers?
- What happens to the permitting reform bill in the current Congress?
- Which states change most, and how will new governors and utility commissions regulate rates and large new loads?
- Will data center pauses slow or stop projects, and how much of the 30 to 35 GW forecast is at risk?
- Who will pay for the new power plants and grid upgrades that data centers require?
- What does the new landscape mean for crude oil, natural gas and pipelines, power and utilities, renewables, and chemicals?
Our report gives ADI’s view on each question and sets out three scenarios for 2027 with the market impact of each.
Download the full report to read our findings.
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About ADI Analytics
ADI is a prestigious, boutique consulting firm specializing in oil and gas, energy, and chemicals since 2009. We bring deep expertise in a broad range of markets where we support Fortune 500, mid-sized and early-stage companies, and investors with consulting services, research reports, and data and analytics, with the goal of delivering actionable outcomes to help our clients achieve tangible results.
We also host the ADI Forum that brings c-suite executives together for meaningful dialogue and strategic insights across the oil & gas, energy transition, and chemicals value chains. Learn more about the ADI Forum.
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