US Midterm Results Split Tech Stocks: Data Center Permitting Fears Send CoreWeave Down 9%, Amazon Up Over 6%
Democratic wins in Texas and Ohio triggered concerns over stricter data center approvals, causing AI infrastructure suppliers to fall while Big Tech rose on reduced capex pressure expectations.
According to German tech outlet t3n, US midterm election results announced on November 4, 2026, led to a sharp divergence in tech stock performance. With Democrats winning governorships in key states like Texas and Ohio, investors feared that new data center constructions would face stronger regulatory headwinds, leading to significant sell-offs in AI infrastructure companies dependent on rapid capacity expansion.
Specifically, shares of Neocloud providers CoreWeave and Nebius fell by approximately 9% and 6%, respectively. Both companies rely heavily on debt financing to build data centers. In contrast, major tech giants such as Amazon, Microsoft, and Alphabet saw their shares rise by more than 6% or 3%. The market logic suggests that if data center build-out slows, these hyperscalers will face less pressure from massive capital expenditures, potentially allowing them to retain more profits.
Texas Governor-elect Gina Hinojosa has already stated she would block new data center permits until protective laws and community rights are established. Texas is slated to host about a quarter of the planned new US data center capacity through 2030. This political shift directly impacted market assessments of supply-side risks for AI compute.
Additionally, chipmakers Nvidia and AMD were sold off due to their tight linkage with infrastructure expansion. SpaceX shares dropped 3.8%, partly because founder Elon Musk supported Republicans during the campaign, raising concerns about potential political scrutiny for its satellite and rocket operations based in Texas.