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techcrunch ai · November 7, 2026

Musk's data centers hit by US midterm backlash

voters rejected data centers in dozens of local ballot measures affecting tech industry, elon musk's companies, especially openai, may face roadblocks.

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the recent us midterm elections resulted in a democratic victory, which could have significant implications for the tech industry, particularly data centers. voters in multiple local ballot measures rejected data center projects, and newly elected politicians, such as texas' governor-elect gina hinojosa, campaigned on restricting data centers. elon musk, who donated half a billion dollars to republicans, now has his companies headquartered in a predominantly democratic state. openai and other companies may need to adapt their policies in response to the changing landscape.

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