Elon Musk floats space data centers as Democratic sweep puts pressure on AI trade
Source: CoinDesk ·
From the source
Texas election result raises fears of data centre restrictions, while Musk and Palihapitiya draw attention to the space economy. The struggling AI infrastructure trade faces another challenge after Democrats took control of both chambers of Congress on Tuesday, triggering fears of tighter restrictions on data centre construction. Democrat Gina Hinojosa’s projected victory in Texas heightened those concerns, according to a report by CNBC . Hinojosa supports a moratorium on AI data centres, while Texas accounts for 27% of planned U.S. data centre power capacity, according to Wells Fargo estimates. These concerns were reflected in early trading, with AI infrastructure stocks CoreWeave and Applied Digital falling about 3.3% and 3%, respectively, while IREN dropped 4.3% ahead of Wednesday’s open. Shares of CoreWeave (CRWV), Cipher Digital CIFR , IREN IREN and Nebius NBIS are down roughly 50% to 60% from their highs as investors question spending, borrowing and future returns. However,…