Quick Take: The Election Was Not a Verdict on Data Centers

The election-driven selloff in data-center stocks overstates the speed and scale of any policy change, while long-term infrastructure demand remains intact.

• Democrats won control of Congress and made broad gains in state governments, prompting investors to anticipate tighter data-center development restrictions, particularly in Texas.
• In Texas, environmental permitting and electricity regulation are shared by the Texas Commission on Environmental Quality and the Public Utility Commission, whose commissioners serve staggered six-year terms.
• A new governor can designate a chair, issue policy directives and influence the executive director, but cannot unilaterally remove commissioners; the next scheduled term expiry is not until August 2027.
• Political concerns over electricity bills, water use and local infrastructure predate the election, including Republican Governor Greg Abbott’s September directive pausing data-center permitting.
• The International Energy Agency projects that global data-center electricity consumption will roughly double between 2025 and 2030, requiring investment in generation, grids, cooling and electrical equipment.

Takeaway: Investors should distinguish project-specific permitting, location and economics risks from the longer-term need for computing capacity and supporting infrastructure; the author views the post-election selling as excessive but will address broader macroeconomic implications separately.