The electoral upset sent Nasdaq-100 futures down 0.8%, while the State Street Technology Select Sector SPDR ETF slid 2% on Robinhood. Companies tethered to data center infrastructure took heavier hits, with CoreWeave tumbling 7% and Texas-headquartered SpaceX falling 6%. Beyond Texas, projected Democratic victories in hubs like Georgia, Pennsylvania, and Ohio jeopardize another 17% of planned domestic capacity. Analysts caution that local officials across these states could increasingly obstruct, delay, or raise costs for upcoming digital infrastructure developments.
Key points
Political shifts in key states threaten to block, delay, or elevate costs for future arti…: Political shifts in key states threaten to block, delay, or elevate costs for future artificial intelligence facilities.
Democratic wins across Georgia, Pennsylvania, and Ohio place a combined 17% of planned U.…: Democratic wins across Georgia, Pennsylvania, and Ohio place a combined 17% of planned U.S. data center capacity under scrutiny.
Policy uncertainties arrive alongside existing headwinds stemming from slowing spending b…: Policy uncertainties arrive alongside existing headwinds stemming from slowing spending by major hyperscalers, OpenAI, and Anthropic.
Sources checked by our analysis pipeline: 1
Artificial intelligence stocks came under pressure overnight as Democrats — seen as proponents of data center moratoriums — won big in midterm elections, with a key victory in the gubernatorial race in Texas, a key tech hub.
Futures on the tech-heavy Nasdaq-100 were down 0.8%, more than double the decline in Dow Jones Industrial average futures. The State Street Technology Select Sector SPDR ETF (XLK) was down 2% on the Robinhood trading platform.
The more direct plays saw bigger losses. High-risk neocloud CoreWeave — which uses borrowed money to build data centers — was off by 7% on Robinhood. Peer Nebius Group fell 4%. Elon Musk's AI data play SpaceX, which is headquartered in Texas, was off by 6%. Oracle lost 4% on Robinhood.
Markets were already anticipating the Democrats to win the House of Representatives and possibly take Senate control. But the Texas governor mansion going to Democrats appeared to be the biggest blow to tech stocks, with shares selling off overnight as signs pointed to Democrat Gina Hinojosa winning.
Hinojosa was the projected winner over incumbent Republican Gov.…
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