Prominent tech investors who relocated to Texas seeking a conservative haven have expressed shock and dismay following election results that saw Democrats win key statewide offices, challenging the state's long-held Republican dominance. The political shift has particularly dismayed figures like Jason Calacanis, a venture capitalist who moved from California in 2024 to escape what he described as "left lunacy."
"Ugh, I moved here to get away from the left lunacy!" Calacanis posted on X. He emphasized his own straight-ticket Republican vote, seeking to distance himself from the outcome.
Texas's midterm elections delivered significant upsets, with Democrats Gina Hinojosa winning the governorship and James Talarico securing a Senate seat, marking the first time Democrats have held these offices in decades. These results have presented a starkly different political landscape for tech figures who had embraced Texas as a conservative refuge.
The election's outcome also carries implications for the technology sector, particularly concerning the expansion of data centers, which have become a contentious issue in many Texas communities. Talarico has advocated for data center companies to bear the costs of their energy and water usage and to obtain community consent, arguing against increased utility bills and exploitation of local resources.
Calacanis countered that the industry already contributes significantly through job creation, taxes, and community donations, suggesting that communities should "extract as much money from them" as possible for local services.
Palantir co-founder Joe Lonsdale, who moved to Austin from San Francisco in 2020, publicly criticized Republicans for failing to maintain their congressional majorities. He described the election as an "electoral f***ing earthquake" and lamented what he called "arrogant, complacent" leadership.
Elon Musk, who moved his home and significant business operations to Texas starting in 2020, also reacted online. "Data centers in space looking pretty appealing right now," he wrote on X, later adding, "Guess my election-interfering space lasers didn’t work this time."
Musk had actively campaigned against Talarico, who ultimately defeated his opponent by a notable margin. Despite Musk's claims about Talarico's stance on certain social issues, the Democrat won the Senate seat.
The election's fallout has reportedly impacted Musk's wealth, with significant paper losses seen in Tesla and SpaceX stock following the results. Republican Senator Ted Cruz has warned that a Democratic-led Congress might target technology executives who worked with former President Trump, suggesting potential subpoenas and legal actions against figures like Musk.
The broader electorate also expressed concerns about the growing influence of artificial intelligence and technology. Exit polls indicated that a majority of voters believed AI would do more harm than good and a substantial percentage opposed the construction of data centers in their communities. These sentiments underscore a growing public scrutiny of the tech industry's impact and expansion.