New governors pledge to halt data center projects, affecting 41% of US capacity

Newly elected governors in several U.S. states have pledged to halt or pause the construction of data centers, affecting approximately 41% of the nation’s planned capacity. This development, reported by Cleanview, highlights a significant shift in policy that could impact states like Texas, Ohio, Georgia, Michigan, New Mexico, New York, and Oregon. Texas, in particular, is exposed with 88.4 GW of planned capacity potentially affected. The pledges were primarily made during election campaigns and target projects that have not yet commenced construction. The situation could lead to permitting delays and new conditions for data center projects, though a nationwide ban remains unlikely at this stage. Key Takeaways Market behavior suggests an increased likelihood of a data center moratorium in Louisiana, potentially influenced by broader political trends in other states. The reported plans by governors appear consistent with support for pause scenarios, reflecting a shift in the political landscape concerning data center construction. The focus on projects not yet under construction indicates potential regulatory changes rather than immediate halts to ongoing developments. What to Watch...