SpaceX proposed to build a computing complex and a gas power plant in Texas for $24 billion.
After the Democrats' victory in the midterm elections, SpaceX shares lost more than 12% over two trading sessions, but then partially recovered.
Elon Musk's company SpaceX plans to invest about $24 billion in the construction of a supercomputer and its own power plant in the city of Starbase, Texas. The information is contained in an official announcement from the municipal authorities.
The project envisages the creation of computing infrastructure for artificial intelligence and a gas power plant with a capacity of about 748 MW with 35 turbines. SpaceX expects to receive tax incentives, the issue of granting which will be considered at a public hearing on December 9, 2026.
Recall that in February 2026, Musk merged SpaceX with his AI startup xAI. At the time of the deal, the value of the combined business was estimated at approximately $1.25 trillion.
Democrats' victory and Musk's losses
The implementation of the project may become more complicated after the US midterm elections on November 3, 2026, in which the Democrats gained control of both chambers of Congress and won a number of gubernatorial races.
In particular, Democratic Party representative Gina Hinojosa was elected governor of Texas. During the election campaign, she opposed the uncontrolled expansion of the data center network due to their impact on energy supply and water resources.
Back in September, the incumbent Republican governor Greg Abbott ordered a pause on issuing permits for the construction of new data centers until a review of their impact on the state's infrastructure was completed.
The Democrats' victory intensified investors' fears about tighter regulation of the AI sector. Against this backdrop, SpaceX and Tesla shares plummeted, and the combined reduction in their market capitalization over the week could exceed $380 billion.
SpaceX (SPCX) quotations plummeted after the elections. Over the two trading sessions after the elections, the securities fell by 12.52%, but partially recovered by the end of the week.
Daily chart of SpaceX (SPCX) shares. Data: TradingView.
An additional factor was Musk's political spending. According to MarketWatch, the entrepreneur directed more than $445 million to support candidates during the midterm elections, but this did not help the Republicans retain control of Congress.
At the same time, it is not yet known whether possible new restrictions will affect the SpaceX project. The company intends to provide the computing complex with its own electricity generation, but such an approach does not necessarily exempt it from environmental and other regulatory requirements.