Power Demand Has a Mandate All Its Own

Long-term U.S. power demand and manufacturing investment should continue rising despite political uncertainty around data center development.

• The planned AI data center buildout is estimated to require 97 GW of power in 2026-2028, while projects with secured power and available grid capacity cover 40 GW, leaving a 57 GW gap.
• U.S. electricity demand is forecast to rise 78% between 2023 and 2050, driven by transport electrification, industrial activity and AI data centers.
• Midterm election results may slow individual projects, yet much of the U.S. remains under Republican or divided control; Texas is reviewing proposed data centers through ERCOT reports due December 10 ahead of a December 17 utility commission meeting.
• Federal support for domestic production continues through funds from the IIJA, the CHIPS and Science Act and the Inflation Reduction Act, alongside tariffs and tax incentives under the Trump administration.
• U.S. manufacturers added 19,000 jobs in October and more than 100,000 in 2026; Parker Hannifin increased North American industrial organic sales growth from 4.9% to 9.4%, Eaton reported 46% year-over-year electrical backlog growth, and Timken raised its full-year earnings outlook.

Takeaway: The author views the post-election pullback in power infrastructure and manufacturing stocks as a buying opportunity for investors focused on the long-term cycle, while policy restrictions and permitting uncertainty remain relevant risks.