With Donald Trump poised for a return to the White House in 2025, the data center industry could undergo significant changes. The Republican control of both the Senate and the House of Representatives could lead to new regulatory policies that impact security, energy usage, and semiconductor imports.
One of the primary areas expected to see change is energy regulation, as data centers require immense power to operate. Analysts predict that the demand for energy in these facilities will continue to soar, driven by the accelerated adoption of artificial intelligence (AI), including AI-driven workloads.
Relaxed Regulations and Their Potential Impact
The construction industry, including data center builders, has expressed optimism regarding a Trump presidency. The Associated Builders and Contractors (ABC) have welcomed the possibility of relaxed regulations, which could ease restrictions on building and energy consumption. This could accelerate the pace of new data center constructions, particularly as AI applications continue to grow.
Andy Cvengros, Managing Director and co-lead of U.S. data center markets for JLL, predicts that the U.S. will need to focus on solving the energy transmission crisis. This will be crucial to ensure that data centers can keep up with the increasing demand for AI workloads, especially with the rapid expansion of generative AI technologies.
Semiconductor Imports and Domestic Manufacturing
Another key area that may see changes is the import of semiconductors. Under a Trump administration, there could be a renewed push to reduce reliance on foreign semiconductor imports, particularly from countries like China. This could boost local manufacturing of silicon chips, which are critical components in data centers.
Additionally, government policies might encourage domestic production of chips, which would not only strengthen the U.S. tech manufacturing sector but also reduce vulnerabilities in the global semiconductor supply chain.
Data Center Power Demands
The growing thirst for power in the data center industry is expected to continue. With more AI systems being deployed, especially in advanced computing environments, facilities will need to increase both their energy generation capacity and transmission efficiency.
As industries like AI and cloud computing expand, the construction of new data centers will likely follow suit. This expansion will require further innovation in energy-efficient technologies to ensure sustainability while meeting growing computational demands.
While the full impact of a second Trump presidency remains to be seen, it is clear that the data center industry will be closely watching the administration’s moves on energy, regulation, and manufacturing policies.
