Goldman Sachs has stated that the US midterm election results amount to a "blue wave" that could have a significant impact on regulation of artificial intelligence and data centers.

Strategists including Jenny Grimberg wrote in a report: "Given that Democrats won far more seats than expected in the House and Senate, we expect Democrats to use upcoming fiscal deadlines to seek policy concessions, especially limiting the Iran war, rolling back some tariffs, and overturning recently implemented spending cuts."

Consistent with this assessment, the oil risk premium has already declined. However, Goldman Sachs believes there are downside risks to Middle East oil supply that could push the risk premium higher again.

"We also believe that Democratic victories at the state and local levels will have a major impact on artificial intelligence and data center regulation, and our equity analysts believe this could have a negative impact on some US utility companies and independent power producers."

Still, the firm expects the importance of the data center issue to "diminish somewhat" in the future, and any pause in development would be short-lived.