AI infrastructure company CoreWeave has responded directly to a shift in Texas policy by proactively seeking dialogue with the incoming governor.
Citing a Bloomberg report from November 8, CoreWeave co-founder and CEO Michael Intrator sent a letter to Texas Governor-elect Gina Hinojosa, expressing willingness to work with her transition team on the responsible advancement of already-approved projects and clear, durable standards for future development. Hinojosa is the first Democratic governor of Texas in more than 30 years, and one of her core campaign pledges is a moratorium on approvals for new data centers. She has publicly stated she will not lift the freeze until protective legislation is in place.
The letter arrives against the backdrop of a profound political shift following the U.S. midterm elections. Democrats won governorships in multiple states, generally campaigning on stricter data center regulation. Goldman Sachs previously estimated that Democratic victories in various states would put roughly 45% of planned U.S. data center expansion capacity at risk of short-term moratoriums, with Texas alone accounting for about 25%. Approximately 13 GW of Texas data center capacity is directly exposed to policy risk.
CoreWeave voices support for regulatory principles
According to reports, in the open letter, Michael Intrator said CoreWeave strongly supports Hinojosa's principled position that data center growth must benefit the people of Texas.
We welcome the opportunity to work with your transition team on the responsible advancement of already-approved projects, as well as clear, durable standards for future development, he said.
Hinojosa outlined her governing philosophy in a post-election interview with CNN:
Texas has always been a pro-business state, but with me as governor, the change is that this must be a partnership that benefits Texans.
CoreWeave responded positively to that stance in its letter, with Michael Intrator saying:
You have made clear that data center growth must benefit Texas, and we strongly support those principles.
According to a Wallstreetcn article, Hinojosa stated explicitly in a CNN interview on November 6 local time: We will pass laws to protect Texas residents, and until those protections are in place, we need a pause on the current work related to data centers. She added: I don't hate data centers. I hate the way they take advantage of Texas. When I am governor, that will stop.
Asked how she would deal with tech giants, Hinojosa said partnerships could be established with Musk and his companies, but on our terms. That statement drew her negotiating bottom line: Texas does not reject tech investment, but it will not accept the previous model in which developers led and government accommodated.
NBC exit poll data showed that 75% of Texas voters oppose building new data centers in their communities. During the campaign, Hinojosa accused data center developers of driving up our electricity bills and depleting our water resources, and she defeated incumbent Republican Governor Abbott with about 52.8% of the vote to 45.7%.
Moratorium tied to legislative process, thaw may come no earlier than May next year
A Wallstreetcn article noted that Hinojosa's remarks effectively link the timeline for unfreezing data center approvals directly to the legislative process. Goldman Sachs analyst Jonathan Leitol previously confirmed that she will not lift the freeze until more comprehensive regulatory legislation is passed.
The 90th Texas Legislature will convene on January 12, 2027, with the regular session ending on May 31, 2027. That means the data center approval freeze may not loosen until the end of May next year at the earliest.
GLJ Research estimates that about 13 GW of Texas data center capacity is directly exposed to policy risk, enough to power roughly 10 million homes. Wells Fargo calculates that every 10% reduction in Texas data centers would have an approximately 1.6% impact on total U.S. AI capital expenditure.
Based on BloombergNEF estimates of roughly $1.76 billion in revenue per GW per month for AI capacity, if 13 GW is delayed by 12 to 18 months, the deferred AI revenue would range from about $275 billion to $410 billion.
For AI infrastructure companies, uncertainty over Texas policy direction directly affects their pace of expansion and capital planning. CoreWeave's proactive letter is precisely an effort to seek policy certainty in this context.
Texas becomes a model, regulatory tightening wave may spread to multiple states
According to midterm election results, Democrats currently hold 29 governorships nationwide, and several governors are calling for moratoriums on data center construction in their jurisdictions to respond to widespread voter dissatisfaction with the rapid expansion of AI infrastructure.
A Wallstreetcn article noted that Wolfe Research analysts have characterized Texas as a model state for the anti-AI construction movement. New Democratic governors in states such as Georgia, Ohio, and Michigan all campaigned on stricter data center regulation, and Jefferies expects anti-data center actions to continue spreading to multiple state legislatures in 2027.
Hinojosa will officially take office in January 2027. Before then, whether AI infrastructure companies such as CoreWeave can secure a clearer policy framework through dialogue will remain a focal point for the market.
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