Core Scientific shares dropped 9.6% to $12.88 following the opening bell, leading a broader decline that hit CoreWeave, IREN, and Nebius Group. The sell-off reflects growing concerns that new legislative hurdles will dismantle the industry's rapid growth trajectory. Glenmede analyst Jason Pride noted that the sector is now bracing for federal efforts to eliminate full capital expenditure expensing, alongside challenges from newly elected governors in states like Texas, Ohio, and Georgia who campaigned on curbing industrial expansion.

Public sentiment has soured significantly, with 56% of voters in a recent survey identifying data-center development as a decisive factor in their congressional ballots. This political shift echoes the grassroots resistance already taking hold in the Midwest and South, where municipalities in Ohio, Kansas, and Florida have moved to ban new construction. As these projects face tightening scrutiny over their impact on local utility grids and resources, the industry’s ability to sustain its current pace of investment appears increasingly vulnerable.