Elon Musk’s business empire braces for Democratic wave as Texas flips blue
SpaceX could face slower data-center approvals and greater regulatory scrutiny as Democrats gain power in Texas and Washington. Incoming Texas Gov. Gina Hinojosa has called for an immediate halt to new data-center projects until lawmakers strengthen community protections and end tax incentives, while opposition is also emerging around SpaceX’s planned expansion at Boca Chica.
Elon Musk’s companies face increased political and regulatory uncertainty after Democrats won major elections in Texas and nationally. Incoming Texas Gov. Gina Hinojosa has criticized favorable state deals for Musk and called for an immediate moratorium on new data-center projects until protections for local communities are strengthened, citing concerns including rising electricity costs.
SpaceX’s planned data-center expansion at its Starbase complex in Boca Chica could also encounter resistance over a potential sale of a beachfront state park. SpaceX operates large AI data centers near Memphis and has identified more than 9 gigawatts of planned or developing capacity, but analysts expect tighter scrutiny and possible delays to threaten the company’s aggressive growth targets.