Texas governor‑elect’s data‑center freeze drags Applied Digital and peers lower
Applied Digital fell sharply after Texas governor‑elect Gina Hinojosa pledged to halt new data‑center approvals until protective rules are adopted. The sell‑off spread to other AI‑infrastructure landlords, with Cipher Digital and TeraWulf also dropping. Both companies carry heavy debt loads of about $6.4 billion and still need to finance roughly 800 MW of capacity.
Why it matters
Analysts say the financing burden and the Texas policy pause increase risk to revenue growth, which pressured the stocks lower (the company notes the debt and financing need in its earnings call). The price declines affect investors holding these high‑debt AI‑infrastructure stocks.
Key facts
- 1Texas governor‑elect Gina Hinojosa pledged to halt new data‑center approvals until new resident‑protection rules are passed. 247wallst.com
- 2Applied Digital’s stock fell 17% to $13.74 in early trading. 247wallst.com
- 3Applied Digital’s stock fell 15% in a later session. finance.yahoo.com
- 4Cipher Digital dropped 14% to $5.58. 247wallst.com
- 5TeraWulf fell 13% to $10.19. 247wallst.com
- 6Applied Digital reported debt of approximately $6.4 billion. 247wallst.com
Open questions
- Applied Digital’s percentage drop is reported as 17% and 15%.
Summary written by AlphAI AI Desk from 2 of 2 sources. Not investment advice. Figures are as stated by the linked sources.