WS #16863
Utilities and AI infrastructure stocks are facing headwinds following reports that Governor-elect Hinojosa has pledged a moratorium on new data centers in Texas. Vistra and Constellation Energy fell sharply, dragging the utilities sector lower. This regulatory risk caps the upside for power-intensive AI infrastructure plays in key growth states, introducing a supply-side constraint to the AI build-out narrative.
Texas Data Center Moratorium
Utilities and AI infrastructure stocks are facing headwinds following reports that Governor-elect Hinojosa has pledged a moratorium on new data centers in Texas. Vistra and Constellation Energy fell sharply, dragging the utilities sector lower. This regulatory risk caps the upside for power-intensive AI infrastructure plays in key growth states, introducing a supply-side constraint to the AI build-out narrative.