An analyst warned that Democrats’ midterm victory will slow the US AI data center build-out over the next two years, sending AI-related stocks lower on Wednesday. SpaceX and Tesla fell 4% before trimming losses, while CoreWeave, IREN and Vertiv also traded lower after Democrats won a majority in the House and Senate on Tuesday night and flipped governorships across key states. Yorkville’s Dan Ives wrote that Democrats taking control, especially the Senate, will create “major hurdles” for AI and tech legislation in the Beltway over the next 2 years, slowing the pace of 800 to 1,000 planned AI data centers across the US. He cited Texas, where around 25%-30% of data center gigawatts and capacity will come from, as the biggest worry; Democrat Gina Hinojosa won the Texas Governor race over incumbent Greg Abbott. Ives called Hinojosa a known anti-data center politician and negative on the AI buildout, making worries around the future of the data center buildout in Texas a real issue for tech investors. He said Texas-based SpaceX and Musk are “caught front and center in this spiderweb,” and Musk wrote on X: “Data centers in space looking pretty appealing right now.”