The note gives investors a framework for Wednesday’s selloff in AI infrastructure stocks: a delay story rather than a demand collapse, which may limit further downside if pauses prove brief. A pull-forward of spending into 2027 could support near-term orders for chipmakers and power equipment suppliers, including Asian manufacturers tied to the buildout. Companies with power and permits already secured may gain relative value as new approvals slow. The main risk to the view is that pauses run longer than expected, which would shift the hit from timing to capacity. --- Goldman sees the political backlash against data centres as a speed bump for the AI buildout, and possibly a reason to build faster before it arrives. Summary: Goldman estimates states likely to tighten data centre rules hold about 45% of planned US capacity It expects temporary pauses in Texas, Georgia and Michigan while lawmakers weigh rules on power, water and tax breaks Texas alone accounts for roughly a quarter of planned capacity Goldman expects curbs to be short-lived, as data centres aren’t a top voter priority Strategist Rich Privorotsky suggested some companies could pull spending into 2027 to beat new rules The note follows a sharp fall in US AI infrastructure stocks on Wednesday Goldman Sachs estimates that states likely to tighten rules on data centres account for about 45% of planned US capacity, flagging a new layer of risk for the AI infrastructure buildout after Democrats made gains in this week’s elections, though it expects any restrictions to prove temporary. The bank’s economists expect Democrats in Texas, Georgia and Michigan to impose short-term pauses on new data centre projects while lawmakers consider tighter rules on electricity use, water consumption and tax incentives, according to reports of the note. Texas alone accounts for roughly a quarter of planned US capacity, making it the most significant of the three. Goldman does not expect the curbs to last long, reasoning that data centres are not a top priority for voters and that political pressure is likely to ease once new frameworks are in place. That makes the risk one of timing rather than a lasting threat to capacity. The timing effect may not run in the obvious direction. Goldman strategist Rich Privorotsky suggested some companies could bring spending forward into 2027 to get projects under way before new rules take effect, which could lift investment in the near term even as the medium-term pipeline faces delays. The warning lands amid a sharp reassessment of the sector. US AI infrastructure stocks fell on Wednesday even as the broader market rallied, and other analysts have moved quickly to quantify the exposure, with one estimate putting more than 13 gigawatts of announced projects in Texas at risk. Several research houses have also cut price targets on companies that had been repositioning toward hosting AI workloads. Goldman’s emphasis on state-level decisions echoes a view shared across much of this week’s research. UBS also highlighted state governments as more consequential for data centre projects than the change in control of Congress, even as it raised its AI capital spending forecasts. The global significance lies in the supply chain. US data centre construction drives orders for chips, power equipment and cooling systems worldwide, so delays or a pull-forward in US projects would ripple through suppliers well beyond American borders. The key question now is how quickly states move, and whether pauses stay as short as Goldman expects. This article was written by Eamonn Sheridan at investinglive.com.