Gina Hinojosa Won the Governor’s Race. What Happens to Texas Data Centers Now?
- Following the Democratic sweep of Texas state offices on Nov. 3, shares of major data center operators dropped on Wednesday, with IREN falling 5.93% to $23.01 and CoreWeave dropping 5.41% to $50.83.
- Governor-Elect Gina Hinojosa campaigned on pausing new data center approvals until the legislature establishes water, power, and environmental regulations and proposes repealing a 20-year tax exemption she claims costs at least $1 billion annually.
- Texas holds 27% of planned U.S. data center power capacity, making operators with significant Texas exposure particularly vulnerable; Nebius and Applied Digital face less risk with campuses in Pennsylvania, Missouri, and North Dakota.
- Applied Digital CEO Wes Cummins downplayed the risks, stating that stricter siting rules "actually increases the strategic value of our campuses that are already powered, operating, and supported by their communities."
- The Texas Tribune reports "Texas' first divided government in decades," with Republicans expected to retain control of the Texas Senate while the Texas House control remains undecided, complicating future regulatory changes.
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31 Articles
What a Bluer Texas Means for Energy and Data Centers
When it comes to energy and data centers, everyone loves Texas. Its pro-business political consensus, unusually deregulated electricity market, wide-open plains, sunny skies, and large natural gas and oil deposits have attracted data center developers, renewables developers, liquefied natural gas export terminals, and battery storage entrepreneurs alike.But this all happened under decades of unified Republican control of Texas’ government. That’…
'Elephant in the room': Texas data center boom faces new political reality
Even before the midterm election results came in, additional regulations on data center development in Texas seemed likely. Industry insiders and policy experts sound off here on what Democratic wins might mean. Also included in this story is a map of data center projects in the Austin region.
CoreWeave's actions have fallen again strongly, in the fear that democratic governments may slow down the expansion of artificial intelligence infrastructure in the United States. Still, Michael Intrator, CEO of the company, said he expects normal continuity of operations regardless of the outcome of the elections. Exclusive material for subscribers. To have full access, access the link of the subject and register.
Democratic Midterm Sweep And Texas Data-Center Moratorium Threat Hammer AI Power Stocks Led By Comfort Systems USA (NYSE: FIX) And Oklo (NYSE: OKLO)
A political earthquake rattled energy and construction markets Tuesday after Democrats were projected to capture both chambers of Congress in the midterm elections. Texas compounded the shock by electing Gina Hinojosa as governor, a candidate who ran on tightening the state’s data-center moratorium, sending a chill through the AI infrastructure trade. Comfort Systems USA (NYSE: […]
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