Analysts warn data-center firms face risks after Democratic election wins

Democratic wins in Texas and Georgia could slow AI data-center approvals in states holding roughly 45% of planned US capacity The AI infrastructure boom just ran into an obstacle that no amount of GPU spending can solve: voters. Democratic victories in Texas and Georgia have investors bracing for tighter state oversight of AI data centers. Morgan Stanley is now flagging specific companies that could feel the pinch if new projects stall in the approval queue. The stakes are large. States where Democrats could move to restrict data-center development account for roughly 45% of planned US capacity, according to Goldman Sachs. Texas alone represents about 25%. Who is exposed, and how The biggest surprise came out of Texas. Democratic candidate Gina Hinojosa defeated incumbent Governor Greg Abbott. That result matters because Texas was already tapping the brakes before anyone voted. Abbott had directed ERCOT, the state’s grid operator, to audit large-load projects and pause certain data-center permits. Results from that audit are expected around December 10, 2026. Investors now worry the permit freeze could be extended under new leadership rather than lifted. Morgan Stanley has named de...