Midterm results threaten Texas's role as AI data center hub

Texas is the fastest-growing US data center market. Democrats won the Senate seat, with James Talarico beating Ken Paxton, and the governorship, with Gina Hinojosa beating the Republican incumbent. MIT Technology Review says this may jeopardize the state's position.

Why it matters: Data center siting has become an electoral issue, with power prices and local backlash driving votes. If new Texas leadership tightens rules or incentives, buildouts could shift to other states, adding risk to the hyperscaler capex plans already straining power and debt markets.