Voters in elections across the U.S. passed measures to restrict data center construction, electing candidates who campaigned on stricter regulation. The results sparked stock market volatility, particularly affecting the Nasdaq, amid investor concerns that new political leadership could slow AI infrastructure development. Texas Gov.-elect Gina Hinojosa has promised to halt new data center construction until safeguards are established.
Where
Statewide
When
Nov. 5, 2026
Sources
Reported by 2 outlets
Taxes and money
None stated in sources.
Who's involved
Gina HinojosaTexas Gov.-elect
Greg AbbottRepublican incumbent Texas governor
Keisha Lance BottomsDemocratic Gov.-elect of Georgia
Joe MaherMarkets economist with Capital Economics
Jorge BarroTexas economist at Texas Real Estate Research Center
The facts
Voters passed at least 44 of 47 data center restriction measures nationwide; Texas had no such measure.1
Texas accounts for 25 to 30 percent of data center capacity expected online by 2030.1
Texas has 169 operational data centers, 118 under construction, and over 500 planned.1
Nasdaq fell sharply on election results and investor concerns about data center growth pace.2
Tech companies including Meta, Google and Microsoft announced major data center projects in Texas.1
Who said what
These are statements and claims made by the people involved. They are reported, not verified.
Gina Hinojosa, Texas Gov.-elect Data centers moved to rural communities with no rules to protect Texas; need to stop construction until protections exist.1
Keisha Lance Bottoms, Democratic Gov.-elect of Georgia Will sign executive order to pause new data center construction once in office in January.1
Joe Maher, Capital Economics Midterm shock to stock market may derail the AI equity boom; trend strengthens sense boom is in final innings.1
Jorge Barro, Texas Real Estate Research Center Growing concern about data centers' noise, utilities, electricity rates, water quality and water rates in communities.2
How they headlined it
The same event, as each outlet put it. Marked words appear in only one outlet's headline.
AI data center backlash fuels votes for change and sharp stock market swings
These outlets were found through Google News headlines. Google decides which outlets appear there, and they lean mostly one way, so this sheet can only be as balanced as the reporting it was built from. Leanings are AllSides Media Bias Ratings.
IREN's Texas data center project for Microsoft in Childress is running behind schedule. Microsoft requested network changes to support newer AI models, contributing to delays. The project also faced equipment shortages and a generator fire. Microsoft announced a $5 billion reduction in 2026 capital expenditure tied to the delays.
$$9.7 billion for cloud services contract value
IREN, data center developer; Microsoft, customer for cloud services; Aterio, analyst firm
Tesla CEO Elon Musk announced Friday that the company will phase out Cybertruck production at Gigafactory Texas around mid-2027 to make room for increased Cybercab robotaxi production. Musk did not say whether the Cybertruck would be produced elsewhere or discontinued entirely.
Elon Musk, Tesla CEO; Wes Morrill, Cybertruck lead engineer; Tesla, company
IREN, a cloud service provider backed by Nvidia, said Microsoft requested changes to networking equipment at a data center project in Childress, Texas, delaying when the company expects to reach $4 billion in annual recurring revenue from year-end to January or February 2027.
$$9.7 billion for contract value for data center project
IREN, cloud service provider; project developer; Microsoft, customer; requested equipment changes; Daniel Roberts, IREN co-CEO; spoke on earnings call
Microsoft will not exercise an option to more than double its existing agreement with AI cloud provider Nscale for computing power at a Texas data center. The decision was made several months ago, before Nscale's September IPO filing, and does not affect the existing Texas contract.
$tens of billions of dollars for potential deal extension value
Microsoft, company declining to expand data center agreement; Nscale, AI cloud provider offering expanded agreement; Gina Hinojosa, governor-elect
No. 13 Texas Volleyball defeated Missouri 27-25, 25-13, 25-23 on Friday at the Hearnes Center in Columbia, Missouri. The victory extended Texas' win streak to four consecutive matches and improved the Longhorns to 13-7 overall and 9-3 in SEC play.
Torrey Stafford, Texas outside hitter; Cari Spears, Texas middle blocker; Henley Anderson, Texas middle blocker and 9 more
Holly Hop Ice Cream Shoppe in Lubbock announced it is closing after 18 years in business. The shop will hold its final hours on Sunday, November 8, 2026, from 1 p.m. to 3 p.m.
Darryl Holland, founder and original owner; Wesley Trook, current owner
Texas A&M lost 17-9 to South Carolina in an SEC football game on Saturday. The Aggies had 457 total yards and a 9-7 lead entering the fourth quarter but failed to capitalize on scoring opportunities, including two false-start penalties near the goal line and a dropped touchdown pass. South Carolina scored 10 unanswered points in the fourth quarter, with quarterback LaNorris Sellers delivering a 41-yard touchdown run. Texas A&M is now 4-5 overall with a guaranteed losing SEC record under head coach Mike Elko.
Texas A&M, football team that lost; South Carolina, football team that won; Mike Elko, Texas A&M head coach and 2 more