# Democrats take Congress, and candidates who pledged data center limits win key governor races

> According to AP, Democrats won both chambers. Candidates pledging data center limits won governor races in Texas, Ohio and Georgia; the Nasdaq fell 5.5% on Nov. 5.

- Publisher: JARRUS (@jarrus.tech), thejarrus.com
- Story date: Nov. 4, 2026 (2026-11-04)
- Published: 2026-11-06
- Tags: Regulation and law, Data centers and energy
- URL: https://thejarrus.com/en/news/midterms-ai/

### AP: Democrats win both chambers

According to AP, Democrats won majorities in both the Senate and the House in the Nov. 3 midterms. Republicans had controlled both. As of Nov. 5, AP data put the Senate at 54 to 44, counting two independents. Democrats **flipped seven seats**, in North Carolina, South Carolina, Ohio, Iowa, Kansas, Texas and Maine. They also lead in Mississippi and Alaska, where races remain uncalled; Alaska's ranked-choice count may run until Nov. 18.

On Nov. 5, AP reported 251 Democratic House seats, past the 218 needed, with 41 seats flipped. A later Yahoo News tally put the House at 253 to 155, with 27 races uncalled. Democrats also took governorships in Georgia, Iowa, Nevada, Ohio and Texas, for a 28-20 edge with Alaska and Kansas uncalled. The new Congress takes office in January 2027.

### Data centers on the ballot

In AP VoteCast, about three-quarters of voters said they were angry or dissatisfied with the country's direction, citing the economy, the war in Iran, corruption and AI data centers. In CNBC's voter poll, 56% called AI and data centers a crucial or major factor in their vote. In NBC's exit poll, 57% said AI will do more to hurt society, against 24% who said it will help.

According to Yahoo Finance, 28 local measures to limit data centers were on ballots in 13 states, and nearly all were on track to pass by the morning of Nov. 4.

### A moratorium pledge in Texas

Gina Hinojosa defeated three-term Gov. Greg Abbott to become the first Democrat elected governor of Texas since 1990. She takes office Jan. 19. In an Oct. 22 video on X, she pledged **a moratorium on all data center approvals** until the Legislature passes laws to protect Texans. In the same post, she said Abbott was still approving data centers despite his election year "pause."

Starting in August, Abbott paused grid connections and environmental permits for data centers, pending an audit expected to finish in December. According to The Texas Tribune, advocates found some permits approved despite the pause in October. Hinojosa's priorities include union jobs, water protections, a ban on nondisclosure agreements, an end to tax breaks and, according to DCD, a community vote on projects. The industry's Data Center Coalition said it wants to work with state leaders on "responsible data center growth."

SemiAnalysis estimates Texas holds nearly 30% of US data center capacity coming online in 2028; Wells Fargo puts its share of planned gigawatts at 27%. Gordon Johnson of GLJ Research put about 13 gigawatts at immediate risk; in his view, projects with power but no state environmental permits slip 12 to 18 months.

https://x.com/GinaHinojosaTX/status/2113354119511490935

### Ohio, Georgia and Pennsylvania

In Ohio, Amy Acton has called for an "immediate conditional moratorium" with requirements developers must meet. In Georgia, the third-largest state for data center development according to Bloomberg, Keisha Lance Bottoms pledged a moratorium on new construction. Reelected Pennsylvania Gov. Josh Shapiro signed an executive order in August to slow data center development. In Iowa, winner Rob Sand has proposed trimming tax breaks for large data centers.

According to Bloomberg, Texas, Georgia, Ohio and Pennsylvania together could leave **half of proposed AI data center additions** in the US vulnerable to stricter local scrutiny. Jefferies had expected an immediate statewide pause in Texas if Hinojosa won, but sees the 2027 legislative session raising costs rather than materially restricting the pipeline. PIMCO's Libby Cantrill expects slower permits and more concessions regardless.

### Markets and industry react

According to Bloomberg, Nasdaq 100 futures fell 2.2% early on Nov. 4, and Samsung and SK Hynix dropped as much as 4%. After the open, Big Tech rose while CoreWeave, Tesla and SpaceX fell about 5%. By the close, CNBC reported, the Dow had gained 1,569 points, or 3%, and the Nasdaq Composite 1.44% to 25,736.51.

Selling returned on Nov. 5. The Nasdaq **fell 5.52% to 24,315**, its worst day since April 4, 2025, according to Yahoo Finance data. The S&P 500 fell 4.36% and Nvidia 9.26%. Altimeter's Brad Gerstner called fears of a broad halt overblown but said at least 10 to 15 gigawatts expected in 2027 may not come online.

In the early hours of Nov. 4, Elon Musk posted on X: "Data centers in space looking pretty appealing right now." By CNBC's count, Musk spent at least $474 million on the midterms, $224 million of it in Texas. According to The Texas Tribune, he had supported Abbott.

https://x.com/elonmusk/status/2117862462976594112

### What comes next in Washington

The Democrats' 54-seat Senate majority falls short of the 67 votes needed to override a veto, so Trump could still block new federal AI laws. According to Yahoo News, he signaled he would use his veto if necessary, and the White House said Democratic efforts to reverse his agenda would fail.

On Nov. 4, Bernie Sanders wrote that 43 of 44 communities had voted for local moratoriums and called for a national data center moratorium. According to CNBC, Rep. Yassamin Ansari said pausing AI development should be a Day 1 priority for the new House majority.

https://x.com/SenSanders/status/2118131101562454038

*The cover image is an AI-generated illustration, not a real photograph.*

## Sources

1. [Gina Hinojosa (X): Greg Abbott is still approving data centers in Texas despite his election year “pause.”, Oct. 22, 2026](https://x.com/GinaHinojosaTX/status/2113354119511490935)
2. [Gina Hinojosa (X): A new era of government by the people and for the people begins today., Nov. 4, 2026](https://x.com/GinaHinojosaTX/status/2118071479795392884)
3. [Bernie Sanders (X): 7 months ago, AOC and I introduced an AI data center moratorium., Nov. 4, 2026](https://x.com/SenSanders/status/2118131101562454038)
4. [Elon Musk (X): Data centers in space looking pretty appealing right now, Nov. 4, 2026](https://x.com/elonmusk/status/2117862462976594112)
5. [Spectrum News (AP): AP: Democrats win control of Senate, House in blow to Trump, Nov. 3, 2026](https://spectrumlocalnews.com/us/snplus/politics/2026/11/03/balance-of-power-congress-2026-midterm-elections)
6. [Yahoo News: Midterms 2026 election results and latest updates: Mississippi votes still being counted in Senate nail-biter after Democrats take control of Congress, Nov. 5, 2026](https://yahoo.com/news/politics/live/midterms-2026-live-updates-election-day-voters-head-to-the-polls-as-democrats-look-to-flip-gop-control-of-the-house-and-senate-110000715.html)
7. [CP24 (AP): Which U.S. Senate, governors races are still uncalled by The Associated Press, Nov. 4, 2026](https://www.cp24.com/news/world/2026/11/04/which-us-senate-governors-races-are-still-uncalled-by-the-associated-press/)
8. [Quartz: 5 governor’s races that flipped to Democrats in 2026, all in Trump-won states, Nov. 4, 2026](https://qz.com/governor-races-flipped-parties-2026-nbc-news)
9. [Bloomberg (Insurance Journal aktarımı): AI Data Center Boom Set for Upheaval After US Election Rout, Nov. 5, 2026](https://www.insurancejournal.com/news/southcentral/2026/11/05/891726.htm)
10. [Bloomberg (Yahoo Finance aktarımı): AI Data Center Boom Is Set for Upheaval After US Election Rout, Nov. 4, 2026](https://finance.yahoo.com/technology/ai/articles/ai-data-center-boom-set-062312036.html)
11. [The Texas Tribune: Gina Hinojosa won the governor’s race. What happens to Texas data centers now?, Nov. 4, 2026](https://www.texastribune.org/2026/11/04/data-center-texas-pause-gina-hinojosa-governor-policies/)
12. [DCD (Data Center Dynamics): Texas governor-elect Gina Hinojosa promises continued data center moratorium, further legislation, Nov. 4, 2026](https://www.datacenterdynamics.com/en/news/texas-governor-elect-gina-hinojosa-promises-continued-data-center-moratorium-further-legislation/)
13. [CNBC: AI data center stocks and Musk’s SpaceX decline as Texas governor result raises risks of a slowdown, Nov. 4, 2026](https://www.cnbc.com/2026/11/04/ai-stocks-texas-governor-data-centers.html)
14. [CNBC: What Wall Street billionaires are saying about Democrats’ midterm sweep, Nov. 4, 2026](https://www.cnbc.com/2026/11/04/billionaires-musk-branson-democrats-midterms-ai-wall-street.html)
15. [Fox Business: Business leaders, investors weigh impact of Democrats’ midterm sweep on markets, AI and travel, Nov. 4, 2026](https://www.foxbusiness.com/politics/business-leaders-investors-weigh-impact-democrats-midterm-sweep-markets-ai-travel)
16. [CNBC: Top Democrats call to rein in AI buildout after midterms sweep: ‘National data center moratorium now’, Nov. 5, 2026](https://www.cnbc.com/2026/11/05/democrats-data-center-restrictions-midterms.html)
17. [Yahoo Finance: Democrats’ victories in Texas laid bare voter unease over data centers — and signal new hurdles for the industry, Nov. 4, 2026](https://finance.yahoo.com/economy/article/democrats-victories-in-texas-laid-bare-voter-unease-over-data-centers--and-signal-new-hurdles-for-the-industry-142918051.html)
18. [Yahoo Finance: Nasdaq Composite daily closes (Nov. 4: 25,736.51; Nov. 5: 24,315.00), Nov. 5, 2026](https://finance.yahoo.com/quote/%5EIXIC/history/)
19. [Yahoo Finance: S&P 500 daily closes (down 4.36% on Nov. 5), Nov. 5, 2026](https://finance.yahoo.com/quote/%5EGSPC/history/)
20. [Yahoo Finance: Nvidia daily closes (down 9.26% on Nov. 5), Nov. 5, 2026](https://finance.yahoo.com/quote/NVDA/history/)

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