CoreWeave Makes Big Promise To Gina Hinojosa As Data Center Backlash Intensifies — Says Communities Should Get Benefits Without ‘Shouldering Costs’

CoreWeave CEO Michael Intrator wrote to Governor-elect Gina Hinojosa, pledging that the AI cloud company would pay for the power infrastructure.

• Intrator congratulated Hinojosa on her election victory and said CoreWeave supported her principles that communities should have a voice in data center development.
• He also added that households should not bear the costs of new infrastructure.
• The company also welcomed her clarification that already-permitted data center projects would be allowed to proceed.

CoreWeave Inc. (CRWV) is making its case to Texas' incoming governor as the state prepares to tighten regulations on data center development amid growing public opposition to the industry's rapid expansion.

According to the letter shared by CoreWeave’s Vice President, Head of Global Government Affairs, CEO Michael Intrator wrote to Governor-elect Gina Hinojosa on Nov. 7, pledging that the AI cloud company would pay for the power infrastructure needed to connect its facilities to the grid and use cooling systems designed to limit water consumption.

CoreWeave shares closed with gains of over 6% on Friday.

CoreWeave Makes Its Case To Hinojosa

In the letter, Intrator congratulated Hinojosa on her election victory and said CoreWeave supported her principles that communities should have a voice in data center development and households should not bear the costs of new infrastructure.

“CoreWeave believes that communities making our operations possible should be able to share in the benefits of that growth without shouldering its costs. That principle is part of how we build and operate,” Intrator said.

The company also welcomed her clarification that already-permitted data center projects would be allowed to proceed, saying it provided certainty for communities, workers and companies that had already committed resources to the state.

CoreWeave said it currently operates facilities in Austin, Denton, Dickens County, Plano, Richardson and Round Rock, and intends to remain a long-term partner to Texas.

On electricity costs, Intrator said the company funds the infrastructure required to connect new facilities to the grid, including substations, transmission upgrades and related construction, rather than passing those expenses to neighboring households.

The company also pledged to use closed-loop liquid cooling systems for new capacity. The systems recirculate coolant through sealed pipes rather than continuously drawing fresh water from local supplies.

"Day-to-day water use is comparable to, or lower than, a commercial office building of similar size," Intrator wrote.

CoreWeave also highlighted its investments in workforce development, including partnerships with educational institutions and apprenticeship programs.

Hinojosa Wants Laws To Protect Texans

CoreWeave's outreach comes as Hinojosa has signaled a tougher approach to data center development in Texas, one of the country's leading destinations for AI infrastructure investment.

Speaking to CNN on Thursday, Hinojosa said the state would introduce legislation to protect residents from the impact of data center projects, particularly in rural communities.

"Data centers have moved into mostly rural communities, and there are no rules and laws to protect Texans," she said.

Hinojosa also called for a pause in data center development until those protections are established, arguing that local communities should have a say in whether and how facilities operate in their areas.

"We will have laws to protect Texans, and we need to stop what we are doing with data centers until we have those protections," she said.

Her comments reflect growing opposition to the industry's expansion, with residents raising concerns about rising electricity demand, water consumption and the impact on local communities.

Outgoing Republican Gov. Greg Abbott had also taken steps to address the issue, becoming one of the first Republican governors to halt the connection of new data centers to the state's electric grid while ordering a comprehensive audit of the projects.

What Retail Investors Think About CRWV Stock

Retail sentiment on Stocktwits around CoreWeave trended in the ‘neutral’ territory at the time of writing.

CRWV stock is down 35% year-to-date and 57% over the past 12 months. The Invesco QQQ Trust (QQQ) is up 7% over the past 12 months, while the Vanguard Morningstar Total Stock Market ETF (VTI) is up 9%.

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