CoreWeave has taken the initiative to send a letter seeking cooperation with the Texas governor-elect, who campaigned on a pledge to halt data center construction.
CoreWeave co-founder and CEO Michael Intrator said in a statement on November 7, local time, that a letter had been delivered to Texas Governor-elect Gina Hinojosa. In the letter, Intrator said, "The governor-elect has made clear that data center growth must deliver tangible benefits to Texans," adding, "We strongly support this principle."
Intrator continued, "We welcome the opportunity to work with the transition team on the responsible completion of already permitted projects and clear, sustainable standards for future development." The article characterizes the move as an effort to reduce uncertainty over the continuity of existing projects and future investment.
CoreWeave's outreach to Hinojosa follows midterm election results that dealt a direct setback to the data center industry. In the midterm elections held on November 3, Democrats won control of both chambers of Congress. Industry concerns also grew as Democratic candidates advocating tighter regulation won gubernatorial elections in states with concentrated data center investment, including Texas, Ohio, Georgia and Michigan.
Hinojosa is the first Latina governor in Texas history and the state's first Democratic governor in 30 years. During the campaign, Hinojosa pledged to impose a moratorium on new data center construction across Texas and eliminate subsidies and tax benefits granted to large data center developers.
Texas is considered the largest US data center market, supported by inexpensive electricity and extensive available land. According to Wells Fargo, Texas accounts for 27% of planned US data center capacity measured in gigawatts.
CoreWeave holds power contracts totaling approximately 4.2 gigawatts (GW) in Texas alone. Of that capacity, approximately 2.7 GW is not yet operating. Concerns that even already permitted projects could face uncertainty over completion helped prompt the letter.
Hinojosa adjusted the position somewhat after the election. In a CNN interview on November 5, Hinojosa noted that Texas had traditionally been a business-friendly state but emphasized that future cooperation with companies must also benefit residents. The article interprets this as an intention to balance a business-friendly approach with tighter regulation.
Data centers are essential infrastructure for the AI industry, but local opposition over rapidly rising electricity consumption and depletion of water resources has placed them at the center of regulatory disputes. More than $380 million was spent on television advertisements mentioning data centers during the midterm election campaign, with Democratic candidates spending more than three times as much as Republicans.
CoreWeave provides AI cloud infrastructure and has expanded its data center business using large power contracts in Texas. The letter is an attempt to establish dialogue proactively before the new state administration takes office.
Original Korean article: imaeil.com
English brief by Korea Wind Intelligence, koreawindintel.com
