CoreWeave: Moratoriums Do Not Dampen Demand

Michael Intrator, CEO of CoreWeave, claims to see no decline in orders and believes potential restrictions will shift data centers rather than dampen demand. This stance comes amid a climate of local opposition and moratoriums, including a first at the state level, as political leaders court the industry while displaying divergent priorities.

Voter Opposition and Risks Reported to Regulators

A national NPR/PBS News/Marist poll indicates that 65% of registered voters oppose the construction of a data center in their community. More broadly, surveys report persistent local opposition to these projects. Companies in the sector, including CoreWeave, mention moratoriums on data centers as a potential risk in their quarterly reports to the Securities and Exchange Commission. CoreWeave's latest 10-Q report, covering the second quarter, includes a reference to the New York state moratorium.

CoreWeave Defends Unwavering Demand and Relocatable Projects

Michael Intrator asserts that moratoriums on data centers will not reduce demand and that these infrastructures will simply be built elsewhere. He emphasizes that it is primarily a matter of location. He reports no decline in orders and believes any regulatory crackdown would shift projects to communities willing to host them. Intrator considers that the market is seeking more data centers. CoreWeave, an AI cloud provider that started in cryptocurrency mining, reiterated this position during its earnings call, highlighting the importance of being a "good neighbor" to the affected communities.

New York Moratorium, Reduced Incentives, and Displayed Appetite in Washington

In July, Kathy Hochul, Governor of New York, implemented the first state-level moratorium on large-scale data centers. Several other governors, including Republicans, have chosen to reduce certain tax benefits and incentive programs for these centers. At the federal level, on Tuesday, Donald Trump stated that data centers would become very popular after hosting leaders from Anthropic, OpenAI, Microsoft, Meta, Google, Nvidia, and other companies for a private lunch at the White House focused on the future of technology. Trump emphasized that these tech players want to collaborate with local communities and meet their expectations.

Potential Restrictions and Election Timelines Leave Gray Areas

CoreWeave is part of a small group of AI infrastructure companies that could be affected if broader opposition to AI leads to significant national restrictions. The outcome of the November midterm elections remains uncertain, as candidates from both parties have sought to portray their opponents as too favorable to the AI industry.