WirecompaniesDextape brief
Democrat wins will slow data center construction and force tech to the negotiating table after even Republican stronghold of Texas flips
Gina Hinojosa beat Gov. Greg Abbott in the race for Texas governor Tuesday.
Dextape brief
Democrats won both congressional chambers in Tuesday's midterms, picking up at least seven Senate seats and more than two dozen House seats. Concerns about affordability, the Iran war and data center growth helped drive the results. Incoming governors Gina Hinojosa, Amy Acton and Keisha Lance Bottoms, who ran on curbing these facilities, are in Texas, Ohio and Georgia. Hinojosa wants a moratorium and an end to developer subsidies, Acton proposed a conditional moratorium, and Bottoms promised a temporary pause. State governors can shape permits, rules and tax incentives, while Congress would need legislation that could face a veto. CBRE counted a record 7,481 megawatts under construction across eight North American markets in the first half of 2026.
Why it matters: Newly elected state leaders could add permitting, tax and regulatory hurdles to the data center buildout that tech firms are financing for AI.
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