CoreWeave (CRWV.US) bonds fall to new lows as Texas data center policy shift hits AI cloud trade.

CoreWeave (CRWV.US) bonds fell sharply on Wednesday, with some dropping to new lows. This followed victories by U.S. Democratic candidates advocating slower data center construction in multiple gubernatorial elections, including Texas. According to Trace pricing data, the AI cloud computing provider's unsecured bonds maturing in 2031 were the worst performers among high-yield borrowers on Wednesday, falling as low as 79.5 cents on the dollar. Its 2030 and 2032 bonds also declined and are now hovering near levels typically considered distressed, with yields exceeding 15%. CoreWeave is one of the companies affected by Texas's policy choice. In that state, Gina Hinojosa defeated incumbent Governor Greg Abbott to become Texas's first Democratic governor in more than 30 years. She has repeatedly called for an immediate moratorium on data center development. Other newly elected governors, including Ohio Democrat Amy Acton and Georgia Democrat Keisha Lance Bottoms, also campaigned in recent months on slowing data center construction. A CoreWeave spokesperson said in a statement: "We currently do not expect the changing political landscape to have any impact on CoreWeave's existing customer commitments or related backlog." The spokesperson also said the company expects its existing capacity to be particularly valuable. The surge in CoreWeave's borrowing costs already rattled markets last month, with traders racing to assess whether speculative-grade companies tied to the AI buildout can withstand higher interest rates. CoreWeave shares fell 9.9% on Wednesday to $48.42, the lowest close since May 2025. The stock has fallen 32% year to date.