Democrat Gina Hinojosa wins Texas governor's race on a data center moratorium pledge, rattling the AI trade
Gina Hinojosa defeated Gov. Greg Abbott, becoming Texas's first Democratic governor since 1990 after campaigning on a moratorium on new data centers, stricter water and power rules and an end to industry tax breaks. Texas holds about 27% of planned U.S. data center gigawatts, per Wells Fargo, which had called a Democratic win a potential 'left-tail event' for the AI trade. Neoclouds CoreWeave and Iren fell in premarket trading and Oracle slipped, while Musk-linked SpaceX and Tesla dropped nearly 4%; Democrats also won or held governorships in data center hubs Georgia, Ohio and Pennsylvania.
Source: CNBC