Who powers the AI boom? What the 2026 US Midterm Elections could mean for energy, utilities and AI stocks

2026 US midterms: could this be the year that voters rally against AI?

AI's ongoing expansion is creating a rapidly-growing need for electricity, data centres, and grid infrastructure not just in the US, but across the world. Yet, public opposition to AI data centres is also rising, due to the toll it is starting to take on local infrastructures and communities. This conflict, according to some experts, is taking centre stage at the 2026 US ​Midterms​​ as a main point of contention among politicians and voters. 

While policymakers across Washington have generally emphasised the economic and strategic importance of AI, opposition to new data-centre developments has begun emerging in several states, the New York Times reported in August 2026. Concerns have centred on issues including rising electricity demand, power costs, water consumption and the growing influence of large technology companies.¹ 

According to The New York Times, candidates from both major parties have incorporated data-centre developments into election campaigns, highlighting how AI infrastructure has become intertwined with broader debates around energy, economic development and quality of life. As AI-related investment continues to expand, the political response to data-centre growth could become another angle traders and investors monitor alongside energy policy and regulation.

Yet, through all the discourse, one glaring point remains: as AI continues to develop, more power will be needed to support that growth. Where, what, and who will provide all of the energy required to power this inescapable boom? And what does this all mean for traders and investors?

Why AI's growth presents new investment opportunities

The rapid expansion of artificial intelligence is leading to a significant increase in electricity requirements. According to the International Energy Agency (IEA), global electricity demand from data centres is projected to more than double between 2024 and 2030, with AI being the primary driver of that growth.²

Could investment implications also extend beyond technology companies further downstream eventually? That outcome seems likely, with Goldman Sachs analysts estimating that global data centre power demand could increase by approximately 160% by 2030³. Data centres provide and house the massive computing power and hardware needed to handle large amounts of AI information processing.

​​​​​​​In a separate report, Goldman Sachs found that ​‘t​​he AI era’ is not just ‘a standard technology cycle’, but a ‘fundamental, economic, and geopolitical realignment’.​ ​

The upcoming US ​midterms​​ ​present US voters and ​​​​alike the opportunity to decide the direction that they would like to take the government’s AI policies in, a not-to-be-taken-lightly decision that could have a massive ripple effect across the world. 

What AI-related topics will be top of mind for US voters during the US midterms?

Although power generation has become increasingly important to the ongoing development of AI, it is only one part of a broader policy landscape. As pointed out, data centres will eventually require reliable electricity supplies, transmission networks, and permit approvals that can sustain AI’s growth and needs.

Below are some key areas that voters and investors would perhaps be inclined to look at in the 2026 US Midterm Elections: 

Semiconductor manufacturing

The US government has spent the last few years encouraging domestic semiconductor production while policymakers attempted to strengthen technology supply chains.

The CHIPS and Science Act, signed in 2022 by former President Joe Biden, allocated approximately US$53 billion worth of funds to support domestic semiconductor manufacturing and research. The Commerce Department had announced over US$30 billion in proposed CHIPS private sector investments by August 2024.⁴

Regardless of which party gains control of Congress this election season, legislative developments around semiconductor subsidies, manufacturing incentives and export controls will remain key focus points over the long-term for both voters and policymakers. 

AI regulation and governance

AI governance is another hot-button topic that might be closely watched by voters, particularly around the areas of data privacy, intellectual property rights, model safety, and competition policy.

The White House has previously described leadership in artificial intelligence as an important national security and economic objective, while lawmakers from both parties have proposed various regulatory frameworks.⁵

Although a comprehensive federal AI framework has yet to emerge, future congressional action could have implications for software developers, cloud providers, and enterprise technology companies.

Infrastructure approvals

Permitting reform could also become a key topic of interest among industry groups, utilities, and policymakers.

Goldman Sachs analysts have argued that transmission lines, power plants and other energy infrastructure may require significant investment and faster deployment if electricity demand continues to rise.⁶

As data-centre development accelerates, project approval timelines, and infrastructure permitting could become increasingly important political and economic issues.⁷

Three energy sources powering the AI growth

Much of the socio-economic and political debate surrounding AI infrastructure so far (whether in the lead-up to the 2026 ​midterms ​​or even earlier), has also been about which energy sources are most likely to support and help with the AI-related rising electricity and infrastructure demand. These sources include:

Natural gas

Natural gas currently accounts for the largest share of US electricity generation, according to the US Energy Information Administration (EIA).⁸

Several analysts have argued that natural gas could remain an important source of electricity for data centres because gas-fired generation can provide reliable power while new AI-related electricity demand is brought online.⁹

​​Further, ​​Reuters has reported that developers are increasingly pursuing ​off-grid​​ power projects to support rapidly growing data centre electricity demand.¹⁰

Nuclear power

Nuclear energy has also found itself in the middle of the conversation. Bank of America analysts have argued that future electricity demand from AI is likely to require contributions from multiple power sources, including nuclear energy.¹¹

In recent years, technology companies including Google, Microsoft and Amazon have announced partnerships or investments linked to nuclear energy projects, as they sought long-term electricity supplies and provisions for future data centre operations.¹²

Renewable energy

Meanwhile, renewable-energy projects, including solar, wind and battery storage, also continue to feature prominently in the energy strategies of major technology companies, from Amazon to Google.¹³

Some analysts have argued that meeting future electricity demand from AI and data centres is unlikely to depend on a single energy source. Bank of America researchers stated that the Trump Administration is pursuing an ‘all-of-the-above approach’ for power generation.¹⁴

From a US midterm voter standpoint, industry groups have argued that lengthy permitting timelines can slow the development of energy infrastructure.¹⁵

The midterms AI takeaway for traders and investors

Perhaps, when it comes to development of AI, the 2026 US Midterm Elections will be more so about US voters deciding the specific policies and stance relating to the technology’s expansion, than they will be about whether pro-AI or anti-AI election outcomes will impact AI investments at all, being that they are already well-underway. 

While AI is often discussed through the lens of software and semiconductor companies, the technology's expansion is increasingly becoming dependent on electricity generation, transmission infrastructure, energy security, and most of all, government policies and interventions. 

For traders and investors, the key question even post-election may not simply be which company will continue to lead the AI race, but rather which industries, energy sources, and infrastructure providers ​may be​​ best positioned to support that growth.

Sources and citations

1. Source: https://www.nytimes.com/2026/08/23/us/politics/data-centers-midterm-elections.html

Citation: "With opposition to the centers mounting, many Democrats and a growing number of Republicans are campaigning against them." - New York Times

Citation: "So far, Democrats have chiefly been the ones racing to harness voter anger about data centers over rising electricity prices, water use and mistrust of the tech sector. They aim to punish Republicans for cozying up to industry by approving many of these projects."

Citation: "But in recent weeks, a growing number of Republican candidates have scrambled to shield themselves from any fallout. They have voiced skepticism about data centers, despite President Trump's full-throated cheerleading for the A.I. industry and fears among party leaders in Washington that blocking construction of the centers could slow the economy and make the United States less competitive against China."

2. Source: https://www.iea.org/reports/energy-and-ai

Citation: "Electricity demand from data centres worldwide is set to more than double by 2030 to around 945 terawatt-hours (TWh), slightly more than the entire electricity consumption of Japan today. Artificial intelligence is the most important driver of this increase." - International Energy Agency

3. Source: https://www.goldmansachs.com/insights/articles/AI-poised-to-drive-160-increase-in-power-demand

Citation: "Data centre power demand is expected to increase 160% by 2030." - Goldman Sachs Research

Source: https://www.eia.gov/todayinenergy/detail.php?id=61424

Citation: "Natural gas accounted for the largest share of U.S. electricity generation." - U.S. Energy Information Administration

4. Source: https://www.commerce.gov/news/blog/2024/08/two-years-later-funding-chips-and-science-act-creating-quality-jobs-growing-local

Citation: "Two years ago today, President Biden signed the historic and bipartisan CHIPS and Science Act into law investing nearly $53 billion in funding to bring semiconductor supply chains back to the U.S, create jobs, support American innovation, and protect our national security." - Commerce.gov

5. Source: https://www.whitehouse.gov/briefing-room/presidential-actions/2024/10/24/national-security-memorandum-on-artificial-intelligence/

Citation: "The United States must lead the world in the development of safe, secure, and trustworthy artificial intelligence." - White House National Security Memorandum

6. Source: https://www.goldmansachs.com/insights/articles/AI-poised-to-drive-160-increase-in-power-demand

Citation: "Power generation and transmission infrastructure will need substantial investment to accommodate rising data centre demand." - Goldman Sachs Research

7. Source: https://www.reuters.com/business/energy/fast-tracked-power-plants-fuel-ai-boom-with-little-public-scrutiny-2026-06-16/

Citation: "The plant is one of dozens of large, off-grid power projects being approved rapidly ... to supply the tech industry's booming demand for powering data centers." - Reuters

Citation: "These plants, built to serve a single data center, are moving ahead at light speed." - Reuters

8. Source: https://www.eia.gov/energyexplained/electricity/electricity-in-the-us-generation-capacity-and-sales.php

Citation: "Natural gas was the top source—about 41%—of U.S. utility-scale electricity generation in 2025." - EIA

9. Source: https://www.rbccm.com/en/insights/2026/05/natural-gas-powers-the-data-center-boom

Citation: "Artificial intelligence is fueling unprecedented demand for reliable baseload power, creating new opportunities in U.S. natural gas markets." - RBC Capital Markets

Citation: "Through the current decade, natural gas is positioned as a backbone fuel supporting the AI infrastructure buildout." - RBC Capital Markets

10. Source: https://www.reuters.com/business/energy/fast-tracked-power-plants-fuel-ai-boom-with-little-public-scrutiny-2026-06-16/

Citation: "The plant is one of dozens of large, off-grid power projects being approved rapidly and often under a cover of secrecy across the United States to supply the tech industry's booming demand for powering data centers." - Reuters

11. Source: https://institute.bankofamerica.com/content/dam/transformation/us-electrical-grid.pdf?_sp=bab4929b-6c13-43fb-ba44-51d736abcef1

Citation: "BofA Global Research notes that AI emissions net impact is likely to be positive, particularly as data centers increasingly source power from low-carbon energy, including renewables and more nuclear in the near future." - Bank of America Global Research

12. Source ('Google' mention): https://www.reuters.com/business/energy/google-signs-deal-develop-small-nuclear-reactors-power-ai-2024-10-14/

Citation: "Google signed an agreement with Kairos Power to develop small nuclear reactors that could provide electricity for its data centres." - Reuters

Source ('Microsoft' mention): https://www.reuters.com/markets/deals/constellation-inks-power-supply-deal-with-microsoft-2024-09-20/

Citation: "Constellation Energy and Microsoft have signed a power deal to help resurrect a unit of the Three Mile Island nuclear plant in Pennsylvania." - Reuters

13. Source ('Google' mention): https://www.google.com/about/datacenters/cleanenergy/

Citation: "We aim to run on carbon-free energy, every hour of every day, on every grid where we operate." - Google

Source ('Amazon' mention): https://sustainability.aboutamazon.com/environment/the-cloud

Citation: "Amazon is the world's largest corporate purchaser of renewable energy." - Amazon

14. Source: https://institute.bankofamerica.com/content/dam/transformation/us-electrical-grid.pdf?_sp=bab4929b-6c13-43fb-ba44-51d736abcef1

Citation: "The Trump Administration is pursuing an "all of the above" strategy for power generation, with a particular focus on cost efficiency and reliability." - Bank of America Global Research

15. Source: https://www.aga.org/permitting-reform-can-help-build-the-energy-infrastructure-america-needs/

Citation: "Lengthy and uncertain permitting processes can create unnecessary delays and add costs to projects that communities depend on." - American Gas Association