Shares of companies tied to AI data center construction dropped sharply on November 4, one day after Democrats won congressional majorities and Gina Hinojosa won the Texas governor's race. Hinojosa had called on Gov. Greg Abbott to order a data center moratorium until the legislature meets. She has not taken office, and it remains unclear whether a pause would cover projects already under way. Wells Fargo estimates, as cited by CNBC, that Texas holds about 27% of U.S. data center gigawatts.
Morning readings at 11:12 a.m. ET against the November 3 close showed Modine down 23.9%, Hut 8 and INNIO each down about 19.6%, Sterling Infrastructure down 19.4%, Cipher Digital down 18.8%, Comfort Systems USA down 16.4%, Vertiv down 12.3%, GE Vernova down 10.6% and CoreWeave down 8.2%. Large technology companies moved the other way, with Microsoft up 6.3%, Amazon up 6.2%, Apple up 6.1% and Alphabet up 4.5%.
Texas exposure is concentrated at Hut 8, which says about 75% of the 1,330 MW it is building sits in the state. That includes its 1,000 MW Beacon Point campus in Nueces County. The company's third quarter results included a lease valued at roughly $9.8 billion, and its interest expense rose to $105.5 million from $8.6 million. Cipher Digital also operates several Texas sites and bought a 70 MW site there.
The report cautions that the price figures are single morning readings and may change by the close. Because Hut 8 released earnings within hours of the election results, price data alone cannot show which event drove its decline.
Source: Stock Titan -- https://www.stocktitan.net/articles/ai-data-center-stocks-fall-texas-vote-november-4-2026