Goldman CEO Warns Blocking US Data Centers Would Send AI Overseas

Goldman Sachs CEO David Solomon has argued that preventing the expansion of US data centers would drive artificial intelligence computing capacity to other countries. His remarks come after Democrats' victories in the midterm elections intensified demands for a halt to new data center approvals.

Last Thursday, investors sold off AI and data center stocks amid concerns that a Democratic-controlled Congress might restrict construction. The Nasdaq dropped 11% below its previous record high, marking its steepest decline since April 2025.

Is the Data Center Backlash Louder Than It Is Real?

In an interview with CNBC's Leslie Picker during the bank's 25th annual alternative summit, Solomon noted that opposition is not widespread. He pointed out that certain states recognize the economic advantages of infrastructure investment.

He called for distinguishing political rhetoric from actual policy, emphasizing that many decisions will be made at the state and local levels.

However, the election outcomes add complexity. Democrats secured governor races in Texas and Georgia after running on platforms that included a moratorium on new data centers, according to reports. It was stated that 32 out of 34 winning governors support stricter regulations on data centers.

Reports also indicated that Goldman analysts foresee temporary delays that might impact 45% of planned US capacity expansion.

Senator Bernie Sanders has subsequently called for a nationwide data center moratorium. A presidential veto and internal party disagreements could restrict its reach.

What Is at Stake if the Buildout Stalls?

Solomon drew a parallel to nuclear energy, suggesting that 50-year-old policy choices would likely be handled differently today.

He explained that data centers provide computing power for American businesses. Blocked developments would push the expansion outside the US.

He also mentioned that he had cautioned in June that growth in AI infrastructure would not follow a straight path.

“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

The selloff in AI stocks on Thursday illustrated how swiftly markets incorporate political risk into the data center expansion. Battles over state-level moratoriums could determine whether AI spending slows or moves abroad.