Goldman Sachs Raises 2026 US Data Center Capacity Forecast

Goldman Sachs maintains a positive growth outlook for United States data center capacity through 2027, despite increasing political and community opposition. In a report released Sunday, the brokerage raised its 2026 year-end capacity forecast by 5 gigawatts to 64 GW, while lowering its 2027 forecast by 5 GW to 90 GW.

The firm predicts power demand will grow by 38 percent in both 2026 and 2027. This expansion faces headwinds from local concerns regarding electricity demand and utility costs. A June Reuters/Ipsos poll indicated that only one-third of Americans approve of the construction pace, and only 14 percent support building such facilities in their own communities to support AI projects for firms like Meta, Alphabet, Amazon, Microsoft, and xAI.

This public backlash presents a political challenge for Republicans ahead of the November 3 midterm elections. Despite these tensions, the firm suggests that the overall growth outlook remains largely unchanged.