Key Points
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Midterm election results last night put Democrats in control of both the U.S. Senate and House of Representatives.
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Elections also put Democratic governors in control of four states key to the artificial intelligence revolution.
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If governors slow data center construction on Earth, SpaceX may have a solution.
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Elon Musk made a bold bet on artificial intelligence when he IPO’d Space Exploration Technologies (NASDAQ:SPCX) with a focus on AI this year, and predicted his company would target a “Super Intelligence” market worth $26.5 trillion.
Now, the 2026 midterm results are in, and the Democrats won with both a landslide and an apparent mandate to slow the rate of AI data center growth. So what does this mean for SpaceX?
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Apparently, nothing good. SpaceX stock is down 3% as of 12:10 p.m. ET.
Image source: Getty Images.
Bad news for artificial intelligence?
At last report, the U.S. Senate is looking like it will seat 54 Democrats to just 44 Republicans, while the House of Representatives is tilting blue 228-139 (with 68 seats unconfirmed). That could be bad news for AI businesses at the national level, but state regulation could pose an even bigger problem.
Axios reports today that new Texas Governor Gina Hinojosa wants a moratorium on data center construction in that state, which will be home to 41% of planned new U.S. data center capacity in 2028. Moreover, Democrats also won the governorship in Ohio, Georgia, and Arizona, the three states immediately behind Texas in building AI data centers.
What it means for SpaceX stock
All of this sounds like bad news for SpaceX’s data center ambitions… except for one thing. While SpaceX’s rivals are building their data centers on Earth, Elon Musk’s primary focus is on launching data centers to orbit — where concerns about water use, electricity demand, and air and property rights that are dogging the industry won’t affect the build-out.
Strange as it may sound to say, increased regulation of AI data centers may turn out to be good news for one of the biggest AI companies today. And the Blue Wave that just swamped Congress could end up being good news for SpaceX stock.
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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Space Exploration Technologies. The Motley Fool has a disclosure policy.
