Texas was the new epicenter of the AI data center buildout. That might be kaput.

MIT Technology Review · James O'Donnell · 2026-11-04 18:50 UTC

Some of the largest AI infrastructure projects in the world are underway in Texas. A dramatic political shift could slow their construction—and deepen concerns about the economics of the AI boom.

Some of the largest AI infrastructure projects in the world are underway in Texas. A dramatic political shift could slow their construction—and deepen concerns about the economics of the AI boom.

Texas is the fastest-growing data center market in the US and ground zero for Big Tech's largest AI buildouts. But the blue wave that swept the Lone Star State may jeopardize that position.

Democrat James Talarico won the US Senate seat against Ken Paxton. Gina Hinojosa won the race for governor against the Republican incumbent, Greg Abbott. At the state level, Democrats will take control of the Texas House for the first time in 24 years. Talarico and Hinojosa made data centers a central issue, discussing them constantly on the campaign trail.

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