The critical factors for AI data center expansion—permitting, grid access, and tax incentives—are controlled at state and local levels. Therefore, gubernatorial and state legislature elections will have a more immediate impact on the pace and location of AI development than federal results.
Investors should not expect a shift in key policies like tariffs, trade, and deregulation even if Congress changes hands. The executive branch retains control over these market-moving variables, meaning that policy uncertainty driven by the White House is likely to persist.