Elon Musk’s political spending did not deliver the results he sought in the 2026 midterm elections. Democrats won control of both chambers of Congress, Texas elected Democrat Gina Hinojosa as governor, and voters in communities across the country supported measures restricting data center development.
Those outcomes could affect Musk’s plans to expand the computing infrastructure behind his AI businesses. Hinojosa has proposed a moratorium on new data center development, while Musk’s companies have major operations in Texas and SpaceX plans to expand computing capacity at its Starbase site in Boca Chica.
Musk contributed approximately $474 million to political groups and candidates during the election cycle, according to campaign finance reporting by The New York Times. That included roughly $216 million for America PAC and $168 million for the Senate Leadership Fund, which supported Republican Senate candidates. On X, Musk responded to the losses with a joke about his “election-interfering space lasers.”
The election also reflected growing local opposition to data centers. The Verge reported that 45 ballot measures on data center development were considered nationwide; by Wednesday morning, results from 33 favored restrictions. Measures included temporary construction pauses and limits on facilities based on electricity demand. Voters in El Dorado, Kansas, approved a 10-year ban on data centers with peak demand above 10 megawatts, while residents of Wells, Maine, backed a temporary moratorium on large facilities.
Residents’ concerns include electricity costs, water use, noise, pollution and the expense of infrastructure upgrades. An NBC News Election Day poll found that 76% of respondents opposed having a data center in their community.
Musk’s infrastructure plans also face legal and regulatory challenges. Near Memphis, his company’s Colossus data centers use natural gas turbines to supply electricity, prompting complaints from nearby communities. On October 30, a federal judge rejected a motion to dismiss a NAACP lawsuit concerning turbines in Southaven, Mississippi. The suit alleges the turbines need air permits and expose nearby residents to harmful pollution.
Research firm SemiAnalysis has identified more than 9 gigawatts of planned or developing computing capacity connected to Musk’s AI ambitions, including projects in Texas, according to Reuters. New facilities could face longer approval processes, closer examination of their electricity use and changes to financial incentives. The election results do not mean those changes will happen immediately, but they add to the obstacles companies may encounter as they seek to expand AI data center capacity.
Sources: Tom's Guide.