Industrials/Multi-Industry: Deregulation continues with a focus on power gen and data centers

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Industrials/Multi-Industry: Deregulation continues with a focus on power gen and data centers

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Industrials/Multi-Industry

Deregulation continues with a focus on

power gen and data centers

Industry Overview

Deregulation remains an underappreciated benefit 26 May 2026

We believe investors underestimate the degree of deregulation already under way, Equity

driven primarily by the Environmental Protection Agency (EPA). In FY25 the Trump Americas

administration finalized 646 deregulatory actions, which it estimates will generate Industrials/Multi-Industry

$211.8bn in net cost savings. In April of 2025, we published a report estimating that the Andrew Obin

regulatory relief from the Trump Administration’s deregulatory actions could offset Research Analyst

demand destruction related to price increases driven by the inflationary environment. BofAS+1 646 855 1817

Our conclusion is that simply resetting regulatory burden to pre-Biden era would andrew.obin@bofa.com

accomplish the task. We are starting to receive more questions on deregulation in power David Ridley-Lane, CFA

Research Analyst

generation and data centers, the two areas where the Trump Administration has been BofAS

most actively focused. +1 646 855 2907

david.ridleylane@bofa.com

The long-term regulatory trend DevinResearchLeonardAnalyst

The cost of regulatory compliance for US manufacturing companies has grown from BofAS

+1 646 855 3698

2.6% of revenue in 1980 to 5.3% in 2024. The National Association of Manufacturers, devin.leonard@bofa.com

continuing the methodology developed by the US Small Business Administration,

estimates the cost of regulatory compliance. Extending their methodology to 2024

suggests $392bn in regulatory costs, or 5.3% of US manufacturers’ revenue.