Democratic wins hit data-center stocks on regulatory fears

Democratic wins in Tuesday's midterm elections are hammering data-center stocks, with neocloud firms like CoreWeave falling sharply on fears of increased regulatory scrutiny. The selloff adds pressure after October losses tied to debt concerns. CoreWeave dropped 9.2%, Nebius fell 6%, and Iren declined 11%, as investors worry Democratic control could slow data center buildouts. UBS estimates about 30% of new data centers expected by 2028 could be impacted, with Texas—a key hub—now under Democratic governorship. An NBC exit poll showed over three-quarters of voters opposed new data centers in their communities, while analysts split on the impact. Some see slower spending as positive, allowing markets to digest capital raises, though CoreWeave shares remain down 46% in a month.