Wealthy technology investors who relocated to Texas to escape Democratic-led states are confronting an unexpected political shift after Democrats secured major victories in the 2026 midterm elections.
The results delivered a major setback for President Donald Trump and his Republican allies, with Democrats winning the governor’s office and a Senate seat in a state that has long been considered a Republican stronghold.
Gina Hinojosa defeated Republican Governor Greg Abbott, becoming the first Democrat to win the Texas governorship since 1990.
Meanwhile, James Talarico defeated Republican Ken Paxton, securing the state’s Senate seat for Democrats for the first time since 1988.
The outcome prompted reactions from several prominent technology executives and venture capitalists who had moved to Texas in recent years, attracted by its conservative political environment.
Jason Calacanis Expresses Regret Over Texas Move
Technology investor and Launch co-founder Jason Calacanis was among those who publicly reacted to the election results.
Calacanis, who relocated from California to Texas in 2024, expressed frustration about the Democratic victories in a post on X.
He wrote: “Ugh, I moved here to get away from the left lunacy!”
His comments followed his prediction that Trump’s handling of issues including immigration enforcement, the war, tariffs and inflation would damage Republican prospects.
However, Calacanis insisted that he was not responsible for the state’s political shift, explaining that he had voted entirely for Republican candidates.
“Don’t blame me,” he wrote, distancing himself from other Californians who had relocated to Texas.
He maintained that his vote had not contributed to what he described as the state’s unexpected political transformation.
Data Centre Regulations Become a Major Concern for Tech Investors
The election results have also raised questions about the future of the technology industry’s expansion in Texas, particularly the construction and operation of large data centres.
Data centres have become a contentious issue in several communities, with concerns surrounding electricity consumption, water usage and the financial burden placed on local residents.
Talarico has called for technology companies operating data centres to cover their own energy expenses, recycle water and obtain approval from affected communities.
He has argued that these businesses should not increase household utility bills or exploit the resources of communities where their facilities are located.
Calacanis pushed back against the criticism, arguing that data centre operators already provide substantial economic benefits.
He pointed to the jobs they create, taxes they pay and donations they make to community projects.
The investor also suggested that local authorities should negotiate favourable financial arrangements with companies seeking to establish data centres, ensuring communities receive substantial benefits through funding for schools and playgrounds.
Palantir Co-Founder Criticises Republican Leadership
Joe Lonsdale, co-founder of Palantir Technologies, also reacted to the election outcome.
Lonsdale moved from San Francisco to Austin in 2020 and has been among the prominent technology figures associated with Texas’s growing appeal to conservative investors.
Rather than directly addressing the Democratic victories in Texas, he reposted a lengthy statement on X criticising Republican leadership for failing to maintain the party’s majorities in Congress.
The post described the election as an “electoral earthquake” and highlighted Talarico’s victory, Abdul El-Sayed’s win in Michigan and Republican Senator Susan Collins’s defeat in Maine.
It accused Republican leaders of ignoring warning signs and becoming complacent about their electoral prospects.
The statement also criticised the party’s management, arguing that its leadership had failed to respond effectively to the political challenges facing Republicans.
Elon Musk Reacts With Suggestion to Move Data Centres Into Space
Elon Musk, who relocated to Texas in 2020 and subsequently moved key operations of Tesla, SpaceX and X to the state, also commented on the election results.
Musk, who spent nearly half a billion dollars supporting candidates during the midterms, had campaigned against Talarico in the Texas Senate race.
Following the Democrat’s victory over Paxton, Musk suggested that moving data centres into space was becoming an attractive alternative.
“Data centers in space looking pretty appealing right now,” he wrote on X on November 4.
He later added: “Guess my election-interfering space lasers didn’t work this time.”
According to figures reported by the Associated Press, Talarico secured 55 per cent of the vote against Paxton’s 43 per cent.
During the campaign, Musk had accused Talarico of wanting to turn children transgender, but the Republican-backed effort against the Democrat did not prevent his victory.
Musk previously served as head of the Department of Government Efficiency under Trump in 2025.
He has also expressed concerns that Democrats could pursue legal action against him if they regained political power.
Musk’s Companies Face Major Market Losses
The political developments also coincided with substantial losses in the market value of companies associated with Musk.
Tesla shares fell 15 per cent over two days, reducing Musk’s personal fortune by approximately $39.4 billion.
SpaceX also recorded a decline of more than 12 per cent following the election, representing an estimated $113 billion in losses.
Combined, the reported declines amounted to approximately $152 billion in paper losses for Musk since the election.
Venture Capitalist Christian Garrett Takes Defiant Position
Not all technology investors responded to the election results with frustration.
Christian Garrett, a partner at 127 Ventures with connections to prominent technology investors Peter Thiel and Alex Karp, adopted a more defiant tone.
In a post on X, Garrett declared that it was “time to get to work” while expressing support for the West and the technology industry.
His response came as the election exposed growing concerns among voters about the influence of technology companies and the expansion of artificial intelligence infrastructure.
Poll Shows Voters Increasingly Concerned About AI and Data Centres
The election also highlighted public unease about the future of artificial intelligence and large-scale technology infrastructure.
An ABC News/Washington Post/Ipsos exit poll, conducted using Ipsos’ KnowledgePanel, found that 57 per cent of voters believed artificial intelligence would do more harm than good for society.
Only 24 per cent said they believed the technology would do more good than harm.
Opposition to data centre construction was even more pronounced, with 76 per cent of respondents saying they would oppose having one built in their community.
The findings come as technology companies continue expanding their infrastructure to support artificial intelligence and other digital services.
Ted Cruz Warns of Congressional Scrutiny Against Tech Executives
Republican Senator Ted Cruz also raised concerns about the potential consequences of Democrats gaining control of Congress.
Speaking during an appearance on the All-In livestream, Cruz warned that Democratic lawmakers could use congressional subpoenas to investigate business executives who had worked with Trump.
He specifically mentioned Musk and his involvement with the administration.
“The Democrats have already foreshadowed that if they have one or both houses, they’re going to use subpoenas to go after business executives who’ve worked with the president, to go after Elon Musk,” Cruz said.
He also accused Democratic politicians of planning legal action against political opponents and criticised suggestions by Senator Bernie Sanders about nationalising or seizing SpaceX and Starlink.
Cruz compared the proposals to actions associated with Fidel Castro’s government in Cuba.
Some Conservative Voters Consider Leaving Texas
The election results also triggered discussions among conservative users on social media about whether they should relocate from Texas.
Some expressed fears that a Democratic administration in the state could introduce additional regulations affecting major technology companies and delay ongoing construction projects.
One user raised concerns about Musk’s business interests, suggesting that he could face significant difficulties operating in Texas under Democratic leadership.
Others discussed the possibility of relocating businesses and families to Florida or Tennessee.
One user wrote: “Lol i’m leaving. Texas is cooked now. Especially Dallas and Houston.”
Another said they would consider moving their family to Florida or Tennessee if the state turned blue, adding that they did not want to remain in Texas as its political direction changed.
A third user also expressed disappointment with the election outcome, saying they were seriously considering moving to Florida despite wanting to remain in Texas and oppose the incoming political leadership.
The comments reflected the frustration among some conservative voters and technology supporters following the Democratic victories in a state that had attracted businesses and wealthy investors seeking an alternative to California’s political environment.
