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Democrats Sweep Congress as Tech Leaders Weigh AI Data Center Slowdowns

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The nation’s business and tech elite spent Tuesday evening weighing a new balance of power in Washington — potential slowdowns in AI data center buildout, fresh congressional scrutiny, and a first-ever California vote on taxing billionaires still being counted — after Democrats swept to full control of Congress in the 2026 midterms.

A Blue Tsunami Sweeps Congress

The wave flipped Senate seats in Texas, Maine, Kansas, Iowa, Ohio and both Carolinas plus roughly two dozen House seats. President Donald Trump must now complete the final two years of his presidency as a “lame duck.” Some tech and business leaders who sought closer ties with Trump ahead of his return to the White House could now face new congressional scrutiny.

Texas produced the defining upset. James Talarico won the U.S. Senate race against Attorney General Ken Paxton — the first Democrat elected to the Senate from Texas in decades — despite more than $150 million in Elon Musk’s spending backing Paxton. Democrat Gina Hinojosa also won the Texas governor’s race over incumbent Republican Gov. Greg Abbott, while Sherrod Brown took Ohio’s Senate seat.

Wall Street Puts the Brakes on the AI Data-Center Buildout

Dan Ives, a veteran Wall Street analyst and AI bull, called the Democratic sweep across the Senate and House a “seismic shift” that will slow the pace of the AI buildout in the U.S. over the next few years. He added, We estimate 10% of data centers will not happen now.

Dylan Patel, founder of SemiAnalysis, took the opposite tack on X, posting alongside a screenshot of early Texas results: I am now bullish space datacenters.

Trump in the deep end as 'blue tsunami' sweeps Congress • FRANCE 24 English

Brad Gerstner, CEO of Altimeter Capital, told the All-In podcast Tuesday evening that fears a “blue tsunami” would block new data centers are overblown. But he warned the results could still slow construction, and that Hinojosa could issue a moratorium on new data centers, which he called really challenging for the AI infratrade.

Gerstner, the architect of the “Trump Accounts” investment vehicle launched in July, also said Republicans and the AI community have struggled with the messaging on AI while the affordability crisis weighed on Americans.

Democrats Sweep Congress as Tech Leaders Weigh AI Data Center Slowdowns
Photo: dnyuz.com

Tech Executives See a Mandate for Change

Lisa Su, CEO of chipmaker AMD, told CNBC’s “Squawk on the Street” that the results show tech companies must do more to sell the benefits of AI: At the end of the day, what we need to do is ensure that everybody wins from AI. She added that the industry needs to make sure the value proposition is clear to every local community that is going to host a data center.

Uber CEO Dara Khosrowshahi, speaking to CNBC on Wednesday morning, said I think the people of our country sent a message regarding change and pointed to continuous inflation taking a mark on the consumer. He urged businesses and Washington leaders to respond, because it was a very clear message that was sent out. Khosrowshahi, who is Iranian by birth and was a vocal critic of Trump during his first term, donated $1 million to the president’s inaugural fund after the 2024 election.

“Voters made clear they demand a different kind of country. Americans want an economy that can compete globally and deliver for them at home. And they made clear that they want leaders they can trust to fight for their constituents,” he wrote. “This night blew the doors off our expectations. From Texas to Ohio, Kentucky to Iowa, and South Carolina to Indiana, voters rejected the status quo. Tonight’s lesson: Never discount any voter in any place,”

Reid Hoffman, LinkedIn cofounder and Democratic megadonor, in a post on X

The LinkedIn cofounder, who spent tens of millions supporting Democrats this cycle after millions backing Kamala Harris in 2024, closed with a call for the next Congress: I hope this will prompt the next Congress to start a fresh conversation about the toxic impact of money in politics and the need for meaningful campaign finance reform.

Hollywood Celebrates the Blue Wave

California’s nation-first ballot measure, officially Proposition 40, would impose a one-time 5% wealth tax on residents with net worth exceeding $1 billion. As of around 7 a.m. ET Wednesday, the “No” vote held a strong lead. The final tally was still being counted.

Blue wave 'turning into a tsunami' as Democrats take control of Congress • FRANCE 24 English

More on this story: Ken Paxton and James Talarico Close High-Stakes Texas Senate Campaigns · Stocks and dollar fluctuate after Democrats’ midterm Sweep

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