CoreWeave seeks cooperation from Texas Governor-elect Hinojosa, who campaigned on a data center moratorium and wants Musk’s companies on ‘our terms’

CoreWeave has asked Texas Governor-elect Gina Hinojosa for cooperation on data centers¹. Hinojosa backed a data center moratorium and has since outlined plans to “balance” Texas’ reputation as a business-friendly state with plans for stiffer regulations¹.

Democrat Gina Hinojosa won the governor’s race after campaigning on a proposed moratorium on new data center projects⁶. On the campaign trail, she vowed to implement a moratorium on data center development until laws are passed by the Legislature to protect Texans³. The governor-elect has vowed to halt data center expansion until residents are protected².

She has also set out her approach to Elon Musk. “We can have a strong working relationship with Elon Musk and his companies, but it has to be on our terms,” the governor-elect said⁴.

Why it matters to investors

Texas has drawn technology companies and their founders from other states. Musk left California in 2020, enraged at its Democratic leadership, uprooted his businesses and vowed to build his future in Texas⁵. The tech billionaires who fled California are now facing a new blue Texas⁵.

A state-level pause would land on a sector already facing local resistance. Hutto is joining a growing list of Texas towns looking to stop tax breaks for data center developments⁷. Across the country, voters rejected data center expansion and approved most moratoriums on the ballot in 10 states⁶.

The national numbers show how widespread the pushback has become. Over 440 data center moratoriums are active in the US, and 34 states have considered moratorium measures⁸. Moratoriums act as temporary bans on developments⁸, and developers are pivoting after the midterm rebuke⁸.

For data center operators such as CoreWeave, the request for cooperation¹ is an early sign of how the industry plans to engage a governor who campaigned against its expansion⁶.

What to watch

The details of Hinojosa’s plan are the first thing to watch. Her campaign promise tied a moratorium to the passage of new laws by the Legislature³, and her stated aim is to balance a business-friendly reputation with stiffer regulations¹.

The second is how Musk’s companies respond to her call for a relationship on the state’s terms^4,5.

The third is local action. Texas towns are already moving against data center tax breaks⁷, and the spread of moratoriums nationally^6,8 will show whether the Texas shift is part of a broader change in how states treat AI infrastructure².