AI stocks slide as Texas governor result raises data center risks
Democrats' projected victory in Texas, including Gina Hinojosa's win over Gov. Greg Abbott, is raising concerns among investors about the state's future as a major data center market. Hinojosa has supported a moratorium on AI data centers, while SpaceX is developing multiple gigawatts of data center capacity, including projects in Texas.
AI-related stocks weakened after Democrats won key elections in Texas and other major data center states. Investors focused on the Texas governor's race because the state accounts for an estimated 27% of planned U.S. data center capacity and has been viewed as a favorable location for development.
Projected governor-elect Gina Hinojosa has expressed support for a moratorium on AI data centers, creating uncertainty for companies planning projects in Texas. SpaceX is building out multiple gigawatts of data center capacity, while analysts warned that Democratic victories could encourage state and local officials to block, delay or increase the cost of future developments.