U.S. Democrats and Republicans press companies to shoulder AI data center power costs, putting Bloom Energy in line to benefit [U.S. Midterms]

[Financial News]  With Democrats gaining a clear advantage in the U.S. midterm elections, memory chip stocks such as Samsung Electronics and SK hynix are falling amid concerns about regulation of AI data centers. Meanwhile, as calls for data centers to bear power procurement costs directly become a shared position of both Democrats and Republicans, onsite power companies such as Bloom Energy are emerging as potential beneficiaries.
On the 4th, Samsung Electronics and SK hynix were trading lower on the domestic stock market. This was amid expectations that construction of AI data centers and regulation of Big Tech could be tightened if Democrats expand their influence in Congress. Earlier, on the 2nd (local time), Micron Technology, Inc. fell 5.8% on the New York stock market amid concerns about the profitability of AI infrastructure investments.
iM Securities said uncertainty could grow if Democrats take control of both chambers of Congress, as some Democratic lawmakers are calling for a pause in construction of new data centers, citing rising electricity bills and pressure on power and water supplies. Hyundai Motor Securities also noted that construction delays could lead to a long-term decline in demand for Korean memory chips.
What is notable is that calls for companies to bear power costs are not an issue raised only by Democrats. President Trump’s “Ratepayer Protection Pledge” would require companies to directly bear the costs of power generation facilities and grid improvements. Vivek Ramaswamy, the Republican candidate for governor of Ohio, has also called for a moratorium on data center construction and for companies to cover the electricity costs of nearby residents.
Among 74 candidates in gubernatorial races across 36 states, 43% supported construction bans or moratoriums, while 51% backed tighter regulation or conditional development. A Reuters-Ipsos poll also found that 77% of respondents were concerned about data centers driving up electricity bills.
In this environment, the market is turning its attention to companies that could ease the burden on the existing power grid. Energy news outlet OilPrice.com named Bloom Energy and NextEra Energy as potential beneficiaries in a scenario of a Democratic landslide. Bloom Energy’s solid oxide fuel cells (SOFCs) can be installed near data centers and supply electricity without a connection to the existing grid. At an Oracle data center in Utah, power supply actually began in less than two months.
Expectations for the onsite power generation market are also growing on Wall Street. In a report last October, Morgan Stanley estimated that a “behind-the-meter” (BTM) power generation market worth about $240 billion could emerge, based on approximately 77 GW of unmet electricity demand from U.S. data centers in 2026–2029 and 40 GW of demand from the commercial and industrial sectors.
Morgan Stanley ranked Bloom Energy first among onsite power generation technologies based on the speed of securing power. BorgWarner’s microturbines and FTAI Aviation’s aircraft-engine-derived turbines ranked second and third, respectively. It maintained its $310 price target and “Overweight” rating on Bloom Energy.
An earlier report in September identified BTM turbines and engines with 19 GW of capacity and Bloom Energy fuel cells with 6 GW, among other options, as ways to cover a 57 GW power shortfall by 2028. With gas turbines identified as a major supply option, GE Vernova is also being cited as a potential beneficiary. Scotiabank described Vistra as a leading unregulated power supplier positioned to meet AI power demand and set a $298 price target.
The difference was also reflected in stock prices. On the 3rd (local time), the day of the midterm elections, Bloom Energy surged 11.73%. The rise followed Barclays upgrading its rating to “Overweight” and setting a $289 price target. On the same day, FuelCell Energy gained 5% and GE Vernova rose 3%.
However, some analysts are cautious about the possibility of AI investment slowing. Societe Generale said Democrats are unlikely to secure enough seats to override President Trump’s veto, and that major federal agencies are also under Republican control, making it likely that the current trend in AI investment will be maintained. Kiwoom Securities also noted that the KOSPI has repeatedly recovered after U.S. midterm elections.
An industry official said, “Ultimately, the key is who bears the cost of procuring power for AI data centers and how quickly power can be secured, according to assessments,” adding, “The stronger the principle that companies bear power costs, the greater the strategic value of onsite power generation companies could become.” 
[email protected] Kim Gyeong-a Reporter