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CoreWeave stock and bonds tumble following Democratic wins and Texas data center moratorium call

CoreWeave shares fell 7.2% and its bonds dropped to new lows after Democratic gubernatorial candidates won key races, led by Texas Governor-elect Gina Hinojosa's push for a data center moratorium.

Texas Governor-elect Gina Hinojosa walking through a crowd of supporters and media outside a building at night.
Image: @Reuters

CoreWeave saw its stock drop 7.2% and its bonds fall to new lows on Wednesday following election victories by Democratic gubernatorial candidates who advocate slowing down data center development, according to reporting from Bloomberg and Quartz.[2][3][4][5]

The market reaction followed the gubernatorial race in Texas, where Democrat Gina Hinojosa ousted incumbent Governor Greg Abbott after campaigning on an immediate moratorium on data centers. Reuters reported that Hinojosa's pledge to crack down on the rapid construction of server warehouses has introduced uncertainty across Texas, which had become a prime hub for data center projects due to plentiful power supplies, relatively cheap land, and a pro-business environment.[1][3]

Key facts

  • CoreWeave's stock fell 7.2% and its unsecured bonds dropped to new lows following the midterm elections.
  • Democrat Gina Hinojosa ousted Governor Greg Abbott in the Texas gubernatorial election.
  • Texas Governor-elect Gina Hinojosa called for an immediate moratorium on data center construction.
  • Democratic candidates who favor slowing down data center development won multiple gubernatorial races.
  • Texas has emerged as a major data center market due to abundant energy, relatively low land costs, and a pro-business regulatory environment.

Sources · 5 sources

  1. RE

    Reuters@ReutersPost on X ·

    Texas' red-hot data center industry has been plunged into uncertainty by governor-elect Gina Hinojosa's pledge to crack down on the rapid growth of server-warehouse projects. With plenty of energy supplies, relatively cheap land and a pro-business environment, Texas has become one of the hottest regions for data center development in recent years ➡️ https://t.co/QKDv09ocNQ

    Open source
  2. BL

    Bloomberg@businessPost on X ·

    CoreWeave’s bonds tumbled on Wednesday, in some cases to new lows, after Democratic candidates in favor of slowing down data-center construction won a number of gubernatorial races, including in Texas. https://t.co/9DYiuP4gmY

    Open source
  3. QU

    Quartz@qzPost on X ·

    CoreWeave bonds tumble to new lows after Texas elected a data center foe: Democrat Gina Hinojosa, who has called for an immediate data center moratorium, ousted Gov. Greg Abbott; CoreWeave stock fell 7.​2% dlvr.​it/TWBdzf https://t.co/vk86Ualgjr

    Open source
  4. TE

    Techmeme@TechmemePost on X ·

    CoreWeave's stock and unsecured bonds fall after sweeping Democratic midterm victories, as Texas Governor-elect Gina Hinojosa calls for a data center moratorium (Katherine Schwartz / Bloomberg) (Visit Techmeme dot com for the link and full context!)

    Open source
  5. TE

    TechmemeArticle ·

    CoreWeave's stock and unsecured bonds fall after sweeping Democratic midterm victories, as Texas Governor-elect Gina Hinojosa calls for a data center moratorium (Katherine Schwartz/Bloomberg) Katherine Schwartz / Bloomberg : CoreWeave's stock and unsecured bonds fall after sweeping Democratic midterm victories, as Texas Governor-elect Gina Hinojosa calls for a data center moratorium — CoreWeave Inc.'s bonds tumbled on Wednesday, in some cases to new lows, after Democratic candidates in favor of slowing …

    Open source