Election Results Raise Questions About Musk’s Texas Data Center Expansion
The article examines how Democratic election victories could threaten Elon Musk’s planned Texas data center expansion and broader AI infrastructure projects. It also notes growing public opposition to data centers and New York Gov. Kathy Hochul’s statewide pause on large-scale data center construction.
Elon Musk’s SpaceX and Tesla shares fell after Democrats made gains in the midterm elections, including victories in Texas. The article says Musk has been developing multiple gigawatts of data center capacity in Texas and spent heavily to support Republican candidates who favored business-friendly and data center policies.
Investors and technology executives are concerned that Democratic control could lead to new data center construction moratoriums and stricter AI regulation. Shares of CoreWeave, Iren and Nvidia also declined as markets anticipated slower infrastructure buildouts, while public opposition to data centers has increased nationwide. New York Gov. Kathy Hochul has already ordered a statewide pause on large-scale data center construction, illustrating the regulatory risks facing the industry.