Goldman's Solomon: Blocking US Data Centers Sends AI Buildout Overseas

Solomon made the case for keeping the buildout moving during an appearance with CNBC's Leslie Picker at Goldman Sachs' 25th annual alternative summit. Opposition to new data centers isn't universal, he said, pointing to states that value the economic benefits of infrastructure investment. He urged separating political noise from substantive policy and noted that state and local decisions will shape much of the outcome.

Markets weren't waiting for clarity. Investors dumped AI and data center stocks last Thursday on fears that a Democratic Congress could curb construction, and the Nasdaq slid 11% below its record high in its worst session since April 2025.

The midterm results sharpened those fears. Democrats won governorships in Texas and Georgia after campaigning partly on a moratorium on new data centers, according to reports, and as many as 32 of 34 winning governors back stricter data center rules. Goldman analysts expect short-lived halts that could hit 45% of planned US capacity expansion, it was reported.

Sen. Bernie Sanders has since demanded a national data center moratorium, though a presidential veto and party divisions could limit it. Solomon said data centers supply computing power to US businesses, and that blocked projects would simply shift the buildout outside the country.

He compared the current debate to nuclear energy, saying policy choices made 50 years ago would probably be decided differently today. Solomon added that he had warned in June that AI infrastructure growth wouldn't follow a straight line, and closed with his own bet: 0 Im optimistic therell still be a significant amount of investment in data centers and compute capacity in the United States.

Thursday's AI stock selloff showed how fast markets price political risk into the buildout. State-level moratorium fights now sit at the center of whether AI spending slows or moves offshore.