Election Results Threaten to Slow Data Center Development in Texas and Other States
Texas Gov.-elect Gina Hinojosa has pledged an immediate moratorium on new data center development, citing impacts on utility rates, water supplies and local control. The election results could also bring stricter scrutiny and temporary pauses to data center projects in Ohio, Georgia and other states, potentially slowing the U.S. AI infrastructure buildout.
Gina Hinojosa's election as Texas governor threatens to disrupt the state's large pipeline of artificial intelligence data centers. Hinojosa campaigned on an immediate moratorium until lawmakers establish rules addressing community input, household utility costs, water use and tax incentives. Analysts said projects that already have power, permits and construction underway are likely to continue, while less advanced developments could face delays or relocation.
The election also heightened regulatory risks in Ohio and Georgia, where governors-elect Amy Acton and Keisha Lance Bottoms supported conditional or temporary moratoriums on new data center construction. Pennsylvania Gov. Josh Shapiro has shifted from promoting data center development to opposing speculative projects and projects opposed by residents. Industry analysts expect additional permitting delays, infrastructure-cost requirements and concessions even if statewide moratoriums are not enacted.