Elon Musk invested at least $474 million into the 2026 midterm elections. Analysis of campaign finance records shows that $224 million of this total was directed into Texas, where Republican candidates Ken Paxton and Greg Abbott were defeated by Democrats James Talarico and Gina Hinojosa.
The America PAC, funded by Musk, spent approximately $86.8 million across 44 federal races. According to Federal Election Commission filings, candidates supported by the PAC lost 29 contests and won three, with 12 results pending as of November 4. Over 93% of the PAC's spending went to races that Republicans lost.
Following the election results, shares of Tesla and SpaceX declined by roughly 4% during early trading on November 4. The political shift in Texas may impact future projects, as Governor-elect Hinojosa has proposed a moratorium on new data centers and the removal of industry tax incentives.
Voters in several states expressed opposition to AI infrastructure expansion. In Ohio and South Carolina, candidates who campaigned against data center development won their seats. Additionally, Ballotpedia reported that at least 10 communities across 10 states approved bans or restrictions on data centers.
JPMorgan Asset Management projects that AI infrastructure spending could reach $5 trillion by 2030. However, analysts note that rising electricity costs, permitting delays, and tighter public oversight could complicate the financial viability of these large-scale projects.
