TradingKey – The Democrats’ sweeping victory in the U.S. midterm elections has sparked investor concerns over tightening data center regulations. For SanDisk (SNDK), potential construction pauses could delay server and storage equipment deliveries, introducing new timing uncertainties to revenue growth supported by AI demand.

Goldman Sachs estimates that states likely to tighten data center regulations account for about 45% of planned new capacity in the U.S., with Texas representing roughly one-quarter of the nationwide total. Relevant regions could pause approvals for new projects pending new legislation regarding power, water usage, and tax incentives.

SanDisk’s reliance on data center growth is deepening. In the first quarter of…