US Midterms Reshape AI Infrastructure as 45 Percent of Planned Data-Center Capacity Falls Into Question

A Democratic blue wave in the November 4 2026 US midterms flipped control of both houses of Congress and immediately reshaped the outlook for AI infrastructure. Texas, home to about 27 percent of the nation's planned data-center power, elected a governor who pledged to pause new builds. Goldman Sachs estimates that roughly 45 percent of planned US data-center capacity now faces approval risk, triggering a sharp sell-off across the AI infrastructure complex.

A Political Brake on the AI Build-Out

The results signal that state and local politics, not just federal policy, will govern where AI compute gets built. Texas alone accounts for about 27 percent of planned US data-center electricity capacity. Ohio's newly elected senator has also opposed data-center tax breaks.

Markets Priced In the Risk Immediately

On the first full trading day, Hut 8 fell 23 percent, IREN dropped 11 percent, and Core Scientific lost 10 percent. The Philadelphia Semiconductor Index slid 3.6 percent to a six-month low. Meanwhile the broader market rallied: the Dow gained 1569 points, or 3.03 percent, to close at 53356.

Key Points

• About 45 percent of planned US data-center capacity now at risk (Goldman Sachs)
• About 27 percent of planned US data-center power sits in Texas, where new builds are paused
• Hut 8 down 23 percent, IREN down 11 percent, Core Scientific down 10 percent
• Philadelphia Semiconductor Index down 3.6 percent to a six-month low
• Dow up 1569 points, or 3.03 percent, to 53356

Goldman Sachs warned that state and local wins could stall projects in the short term. A likely new Senate Banking chair has floated an AI Bubble Transparency Act targeting the financing of AI capital spending.

Full briefing: https://www.threerouter.com/blog/324

Sources: Daily Economic News, NetEase Finance, Goldman Sachs commentary, threerouter