Texas data centers face uncertain future after Hinojosa wins governor’s race
VST•Texas governor-elect Gina Hinojosa pledged to halt approvals for new data centers until the state establishes new laws. Texas accounts for 25% of planned U.S. data center capacity, and grid operator ERCOT was tracking more than 400 gigawatts of proposed projects seeking grid connections.
1. Moratorium pledge
Gina Hinojosa’s pledge to halt new data center approvals until state lawmakers pass new laws has added uncertainty for an industry that has announced billions of dollars in Texas projects. She said the laws should protect Texans and give communities a say in whether and how data centers are built.
2. Existing restrictions
Texas had already faced pressure on data center development under outgoing Governor Greg Abbott. Abbott halted connections of new data centers to the state’s electric grid, ordered an audit of projects and temporarily banned air permits; ERCOT was tracking more than 400 gigawatts of proposed data center projects seeking grid connections.
3. Industry and voter concerns
A Goldman Sachs note said Texas accounts for 25% of planned U.S. data center capacity. Developers may delay projects or leave the state, while some may accelerate work before new restrictions take effect, a Texas data center attorney said. Polling cited in the article found 79% of likely Texas voters supported limits on the number of data centers built in the state.
