For years Texas was Elon Musk’s safest bet, offering tax breaks, cheap land and friendly leaders. That changed this week. Democrats James Talarico and Gina Hinojosa defeated Musk allies Ken Paxton and Governor Greg Abbott, and the incoming governor has made data centres a target. Hinojosa wants a freeze on new approvals until lawmakers tighten rules on water use, power costs and local control, and she has criticised tax breaks for large facilities. That puts Musk’s biggest Texas projects in question, including the Terafab chip and data centre complex planned for Grimes County and a supercomputer at SpaceX’s Starbase site. Deutsche Bank warned SpaceX’s computing expansion in the state could now face delays. Investors reacted fast. Tesla and SpaceX lost more than $420 billion in combined value over two days, and Musk’s fortune fell below $800 billion.

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