Democrats won the midterm elections in the US and gained majorities in both houses of Congress. The party also took at least seven seats in the Senate and more than two dozen seats in the House of Representatives. Some House districts remained undecided at the time of publication.
Elon Musk was a major loser. He spent about $474 million supporting Republican candidates, of which roughly $200 million went to election campaigns in Texas. The results in the state were a serious blow to his allies: Texas Governor Greg Abbott lost to Democrat Hinojosa, and the Senate race ended in a defeat for Paxton. Musk did not respond to requests for comment.
Voters cited the affordability of living, the war with Iran, and Donald Trump's low popularity among the main reasons for their choices. Concerns related to data centers also played an important role. Three Democrats who won gubernatorial elections spoke out against expanding such centers. Among the elected governors were Hinojosa in Texas, Acton in Ohio, and Bottoms in Georgia.
The data center issue is of particular importance for Texas. The state concentrates most of the capacity of such centers currently being built in the US. Shortly before the elections, Abbott restricted grid connections and the issuance of permits for new data centers. In the first half of 2026, record construction of such facilities was recorded in eight North American markets, which makes the decisions of regional authorities noticeable to the entire industry.
The market reaction was mixed. Technology company shares fluctuated, and shares of companies involved in artificial intelligence infrastructure fell on Wednesday. Analyst Dan Ives expects slower AI adoption and more negotiations on this issue. Forecasts suggest the largest cloud operators could raise capital expenditures to $828 billion in 2026, and the election results add uncertainty to these plans.
The election results also change the political picture for Musk. Trump may veto laws passed by the Democratic Congress. Democrats, in turn, may use their subpoena powers to examine Musk's companies. The Democratic oversight committee also intends to investigate Musk's role in the DOGE program. It is reported that DOGE staff gained private-sector connections and funding for startups, and Musk's companies won government contracts worth about $10 billion.
Experts disagree on whether Musk's influence over the Republican Party has weakened. The voting results show that his money did not guarantee victories, but it is still difficult to assess the long-term consequences. The question of how the new composition of Congress will treat his companies and programs remains open.