Texans criticize Elon Musk after $474 million midterm spending backfires
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Elon Musk's $474 million investment in Republican candidates failed to prevent Democratic wins in Texas, prompting local opposition to his data-centre projects.
Elon Musk spent $474 million on Republican campaigns in the recent Texas midterms, including $224 million on the Senate race, but Democrats captured the Senate seat, a state House majority and the governorship. The spending sparked backlash among residents who view Musk’s data-centre expansions as a threat to the state’s rural character.
"We just sent a message to every billionaire mega-donor, every trillionaire mega-donor," Democratic senator James Talarico said in his victory speech, adding that power belongs to the people.
Local farmer Colby Smith, who did not vote in the election, expressed frustration with the growing number of data centres, saying they have "bulldozed everything flat" and erased wildlife from the landscape.
A University of Houston poll released last month found that eight in ten likely Texas voters support limits on the number of data centres built in the state.
Governor Greg Abbott, who had previously promoted Texas as an AI hub, ordered a freeze on new data-centre connections to the power grid, a move that drew criticism from President Donald Trump.
Musk responded on X, the platform he owns, that "Data centres in space looking pretty appealing right now," after deleting earlier election-day posts urging support for Republican candidates.
Democratic candidates also highlighted Musk’s role in the campaign, with Talarico describing the victory as a defeat of "billionaires who own the social media algorithms."
The controversy comes as Musk’s investments in Texas, including a planned megafactory for AI chips and the expansion of SpaceX’s Starbase launch site, face scrutiny from the new Democratic leadership.
"The data is needed but the way they’re doing it is wrong," said software engineer John Boyd, who voted for the Democratic candidates.
State officials, including newly elected Senator Gina Hinojosa, have called for a pause on decisions affecting the Boca Chica beach area while the transition proceeds, emphasizing the importance of preserving local environments.