The Democratic party's takeover of both the House of Representatives and the Senate in the US midterm elections signals a period of divided government over the next two years. Because Donald Trump remains in the White House and Democrats lack the two-thirds majority required to override a presidential veto, major federal legislation overhauling climate and energy policies is considered unlikely. Instead, Democrats are expected to increase scrutiny on Trump's appointees, such as EPA commissioner Lee Zeldin, using subpoena powers to launch investigations. Additionally, Democrats might wait until next year to negotiate a permitting reform bill aimed at speeding up energy project approvals that was scheduled for a November vote.
However, the election results could lead to significant energy policy shifts at the state and local levels. In Pennsylvania, where Democrats swept local control, officials have signaled intentions to support renewable energy and cut greenhouse gas emissions. Meanwhile, Democrats secured control of the Georgia Public Service Commission for the first time in 30 years, taking charge of the group that regulates electric utilities and grid expansion.
One of the most notable outcomes of the elections involves the data center industry. According to Ballotpedia, voters favored restricting data center development across 41 local measures. In Texas, newly elected Democratic Governor Gina Hinojosa's campaign call to completely pause data center development could have major implications for the state grid and the broader industry if passed into law.