Democratic Wins Put Musk’s Texas Expansion in New Landscape

Democrats won both chambers of Congress and captured Texas’s governorship in the November 2026 midterm elections, creating a new political landscape for Elon Musk’s companies, which have major operations in the state. Gina Hinojosa defeated Republican Greg Abbott, while James Talarico defeated Republican Senate candidate Ken Paxton, according to the reported results. Musk, who backed Republican candidates during the election cycle, posted on X, “Guess my election-interfering space lasers didn’t work this time.” He later wrote that data centers in space looked appealing. The election outcomes came after Musk spent nearly $500 million supporting Republicans, with one report putting the total at $458 million. Hinojosa has called for halting new data-center projects until stronger protections for local communities are in place. She has also opposed tax breaks for the facilities, citing concerns about electricity costs and effects on residents. Those positions could affect proposed expansion, but no moratorium or change to tax policy has been enacted in the reporting. SpaceX’s planned growth in Texas includes data-center capacity. One report said the company aimed to increase...