SpaceX's 2027 Data-Center Target Looks Unlikely After Midterms

Dow Jones04:01

1501 ET - SpaceX's target for adding 10 gigawatts of data-center capacity next year looks far less achievable given the Democratic wave in Tuesday's midterms, particularly the election of Democrat Gina Hinojosa as Texas governor, Morgan Stanley analysts write in a note. They model 5.7 gigawatts of new capacity in 2027, with the company set to face headwinds from financing, chips, power, and local opposition. "After the results last night, we feel more convicted in our below consensus estimates" for data centers, they write. Still, SpaceX may not be in a worse position than peers, they say, and the company may be able to pivot to friendlier states. The results may also accelerate Elon Musk's push to put data centers in space, the analysts add.

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