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After the midterms, things are looking rocky for Elon Musk and data centers
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Democrats’ midterm victories have handed the tech industry a more difficult political landscape, with data centers emerging as an unexpected flashpoint. In dozens of local ballot measures, voters rejected data centers or backed restrictions and moratoriums. The results signal that opposition to large computing facilities has become a live electoral issue.
The outcome also complicates the position of Elon Musk, one of the biggest data center builders and the largest donor to Republicans. According to TechCrunch’s Equity podcast, Musk donated roughly half a billion dollars but appeared to gain little from it. His companies remain headquartered in a state that has turned decisively blue.
Texas illustrates the shift. Governor-elect Gina Hinojosa, who defeated Greg Abbott, campaigned openly on restricting data centers. Her victory has convinced many in tech that projects in the state will face new roadblocks.
Data centers were not the main driver of the “blue wave,” said Kirsten Korosec on the podcast. Still, she argued, they have become an increasingly grassroots issue because of how hyperscalers and companies pursued project approvals. Companies such as OpenAI are already signaling they can change policies.
Anthony Ha said anti-AI and anti-data center sentiment appears to be a potent political force. He noted that the issue reaches across the country and is bipartisan in many ways, but Democrats proved more effective at harnessing the energy. Tech companies should expect tougher conditions over the next two years.
The tech world is now watching whether the issue persists beyond this cycle. Ha said companies may worry about 2028 and beyond, not just the officials elected this year. For hyperscalers and data center developers, the midterms mark a new period of political risk.
