Where the 2026 Midterms Leave U.S. Energy Policy

Published November 5, 2026

Voters reshaped Congress on Nov. 3, 2026, and energy costs were a big part of why. Democrats won majorities in both the House and the Senate, flipping seven Senate seats, while the White House remains under Republican control. That split will shape U.S. energy policy for at least the next two years.

The issue that tied many races together was affordability. A Pew Research Center poll from October, cited by Utility Dive, found that 74% of U.S. adults were concerned about the price of gasoline and energy, the highest share of any issue surveyed. According to CBS News, 89% of voters said cost of living was a major or crucial factor in their vote.

For businesses, public agencies and data center operators, the result is not a sudden policy reversal. Federal change is likely to be limited, energy costs are now the main lens for policy, and states will write most of the new rules.

What Changes and What Doesn’t in Washington

A new Congress does not mean a new federal energy agenda overnight. With a Republican administration still in place, any major energy bill will need bipartisan support or must survive a possible veto. Agencies such as the EPA and the Department of Energy remain under executive direction, so much of the federal regulatory picture stays as it is.

Tax credits are the area most likely to see debate. In 2022, the Inflation Reduction Act created long-term clean energy credits. In 2025, the One Big Beautiful Bill Act (OBBBA) shortened the timelines for some of them. Observers told Utility Dive that a Democratic Congress could seek to revise the OBBBA’s effects, and one tax attorney expects a possible extension of the solar credit. Any change would still need the President’s signature.

Permitting reform is less certain. The Bipartisan American Affordability and Jobs Act (BAAJA), announced in September, aims to speed federal permitting for energy and infrastructure and expand the Federal Energy Regulatory Commission’s authority over transmission. Supporters hope it can carry into 2027, while some consumer and environmental groups have criticized it, and analysts are divided on its chances after the election.

What developers want most is clarity. According to Crux, a tax credit marketplace, predictability is the single most important thing developers ask of the federal government. After repeated policy shifts over the past five years, many companies already plan around credit horizons of one to four years.

Energy Affordability and Data Centers Shape the Agenda

Energy bills became one of the most visible issues of the campaign. Utilities requested a record $31 billion in rate increases in 2025, according to PowerLines data cited by T&D World, and investor-owned utilities plan $1.4 trillion in capital spending through 2030. Many voters connected those costs to rapid growth in electricity demand.

Data centers sat at the center of that conversation. In an NBC News exit poll, 56% of voters said AI and data centers were a crucial or major factor in their congressional vote. Candidates from both parties responded with their own proposals:

In Texas, Gov. Greg Abbott (R) directed regulators to require data centers to cover the cost of the energy infrastructure they use, then paused new grid connection approvals while proposed projects were audited.
In Ohio, Vivek Ramaswamy (R) proposed free electricity for residents living near data centers, while Amy Acton (D) proposed a conditional moratorium.
In Pennsylvania, Gov. Josh Shapiro (D) and challenger Stacy Garrity (R) each ran ads accusing the other of being too close to data center interests.

The common thread is cost allocation, not whether data centers should be built. Large-load tariffs and interconnection screening are spreading as states try to separate firm projects from speculative ones. One project finance lawyer described the shift as moving from a race to power to a race to bankable power. Operators that can show their efficiency, load profile and contribution to grid costs with clear data will be better placed to secure approvals and community support.

States Take the Lead on Energy Policy

Governors and state utility commissions now hold the most direct influence over energy costs. They approve rate cases, set tariffs for large loads, and shape permitting and incentives. In Ohio, for example, the next governor will appoint a full slate of commissioners to the Public Utilities Commission of Ohio.

Several results point to where state policy is heading:

Newly elected governors in Texas, Ohio and Georgia campaigned on tighter rules for data center development. Governors can influence permitting, regulation and tax incentives, though some actions require legislative approval.
Michigan voters approved Proposal 2, which limits political contributions from the state’s electric and gas utilities, a first of its kind in the U.S.
In Colorado, the Public Utilities Commission’s Clean Heat Plan, which requires utilities to cut natural gas emissions 41% by 2035, remains in place.
Texas, projected by JLL to overtake Virginia as the world’s largest data center market by 2030, is likely to keep refining its large-load interconnection rules.

For organizations with sites in several states, this creates a patchwork of rate structures, reporting requirements and incentives. Consistent tracking of energy use, costs and emissions across every site makes that patchwork far easier to manage.

Conclusion: How Organizations Can Prepare

The midterms changed Congress more than they changed federal energy policy. What did change is the focus: energy costs now drive the debate, and states are setting the pace. For organizations, a few practical steps stand out:

Build energy project business cases that work without tax credits, and treat any credits as upside.
Understand your load profile and energy costs before your utility or regulator asks.
Track utility commission and legislative activity in every state where you operate.
Prioritize efficiency and building retrofits as cost control, using data-driven tools such as AI-assisted retrofit analysis.

Policy will keep shifting with each election cycle. Accurate, consistent energy and emissions data holds its value under any outcome, and it gives organizations, including data center operators, a stronger footing in conversations with regulators, utilities and communities.