CoreWeave bonds fell after opponents of data centers won the U.S. election

Shares of CoreWeave, a provider of cloud-based AI computing, fell during trading on November 4, with several issues hitting new lows, according to Bloomberg. This came after Democratic candidates who advocate for slowing the construction of data centers won several gubernatorial elections, including in Texas.

CoreWeave’s unsecured bonds maturing in 2031 were among the biggest losers on November 4 among high-yield securities. According to Trace, their prices fell to 79.5 cents on the dollar. Bonds maturing in 2030 and 2032 also fell in price and are trading at levels the market considers problematic—their yields exceed 15%.

CoreWeave's stock fell 9%, hitting its lowest level since May 2025.

One of the triggers was the victory of Democratic candidate Gina Inohosa in the Texas gubernatorial election. Inohosa has repeatedly called for an immediate moratorium on the construction of data centers. Other Democratic governors-elect, including Amy Acton in Ohio and Keisha Lance Bottoms in Georgia, have also advocated for slowing down the construction of data centers during their campaigns in recent months.

The sharp rise in CoreWeave’s borrowing costs already unsettled the markets last month: traders were then trying to assess whether speculative-grade companies involved in building AI infrastructure could withstand rising interest rates.

This article was AI-translated and verified by a human editor