Why data centers and Musk lost but billionaires won the midterms | The Indicator

The episode frames the midterm elections as a set of economic signals about AI infrastructure, political spending, and wealth taxes. On data centers, the hosts argue that voters across the country showed strong resistance to new buildouts: an ABC News poll found 76% opposed building data centers in their communities, and Redbud Consulting says 44 of 45 ballot measures restricting data centers passed. The result could make it harder for tech companies to expand in places like Texas and Nevada, where newly elected leaders may be more skeptical of incentives and permits.

The episode then argues that big money in politics did not deliver for Elon Musk. The hosts say Musk spent about $500 million backing Republican candidates, but most of them lost, including Texas races where he spent more than $200 million. They suggest the outcome raises questions about whether campaign spending has limits in high-profile races, even as billionaire money still shaped the debate.

On California’s Prop 40, the hosts say billionaires may have won decisively. Supporters wanted a one-time 5% wealth tax that could raise about $100 billion, but opponents led by Sergey Brin and others spent more than $300 million to defeat it, while also advancing measures to block future wealth taxes. The episode presents that as a major victory for rich donors and a setback for tax advocates.