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Elon Musk faces political fallout after Texas voters reject data center plans

Following the US midterm elections, Elon Musk and other tech leaders face new restrictions on data centers in states like Texas where voters elected officials opposing such projects.

After the midterms, things are looking rocky for Elon Musk and data centers
File photo After the midterms, things are looking rocky for Elon Musk and data centers Photo: TechCrunch

Musk donation yields little return

Elon Musk donated half a billion dollars to the Republican Party before these elections. Reports suggest he received no tangible benefits from this large financial contribution now that Texas has turned blue. His companies remain headquartered in the state despite the recent political shift.

Voters reject data center projects

Dozens of local ballot measures across the country saw voters turn down proposals for new data centers. In Texas, the newly elected governor campaigned on promises to limit these facilities. This grassroots movement grew partly because large technology firms pushed hard to approve their own projects.

Tech companies adjust policies

Some organizations like OpenAI have already announced changes to their operational policies in response to the election results. Industry observers note that data centers have become an increasingly important issue for voters. The political landscape has shifted dramatically against these large-scale infrastructure developments.

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