Democrats took control of Congress in Tuesday’s midterm elections, dealing President Donald Trump and his economic record a sharp rebuke. Voters expressed frustration over rising prices, government corruption and the expansion of AI data centers, according to the results described in the election report.
The party’s most striking gains came in Texas, where James Talarico defeated Ken Paxton to win a Senate seat, becoming the state’s first Democratic senator in nearly four decades. Gina Hinojosa beat three-term Gov. Greg Abbott, making her Texas’ first Democratic governor since Ann Richards left office in 1995.
Democrats also won a Senate race in South Carolina, where Annie Andrews upset Darline Graham, and in Ohio, where Sherrod Brown defeated Sen. Jon Husted. The party flipped Senate seats in Iowa and North Carolina and won key contests in Georgia and New Hampshire. Several of Trump’s prominent endorsed candidates were among those who lost.
The results could intensify political debate over AI infrastructure. Texas is a major center for planned data-center construction, and Hinojosa campaigned for a pause on new projects until the state adopts stricter rules. Her win gives Democrats more influence over the issue, although Republicans retain control of the state Legislature.
The election was also a setback for technology billionaires and corporate groups that spent heavily to support Republican candidates viewed as favorable to large AI data-center projects. Elon Musk, the cycle’s biggest individual political donor, spent record sums backing Republicans, including in Texas. Exit polls cited in the report showed voter concerns about corruption and the growing influence of billionaires. Talarico repeatedly criticized Musk during the campaign, accusing him of trying to buy a personal senator.
Democratic victories may bring closer congressional scrutiny of technology companies and data-center development. Markets reacted as the scale of the party’s gains became apparent, with Dow and S&P 500 futures falling on Tuesday evening.
Economic concerns also featured prominently. Many voters blamed Trump’s tariffs and the war with Iran for worsening their finances, while the cost of living remained a persistent strain. With control of both chambers, Democrats will have greater power to block parts of Trump’s agenda and expand congressional oversight during the final two years of his term.
Sources: CNBC Markets.