Texas Has 'No Real Protections' Against Data Center Impact, Says Gina Hinojosa

Gina Hinojosa, a Democrat candidate for Governor in Texas, expressed strong concerns about the rapid growth of data centers across the state, particularly in rural areas, referring to it as a "gold rush." She criticized incumbent Governor Greg Abbott, stating that he has left Texans with "no real protections" against the industry's impacts. Hinojosa highlighted that data centers benefit from substantial tax breaks, including on electricity consumption, which she estimates costs the state approximately $1.5 billion annually.

She further explained that local officials in unincorporated rural areas lack the authority to regulate these hyperscale data centers, leading to communities feeling helpless regarding issues like infrastructure and emergency services. Hinojosa accused Governor Abbott of refusing to call a special legislative session to pass necessary laws, suggesting his review of data centers is insufficient and that he has received significant campaign contributions from the industry.

In response, Hinojosa has called for a moratorium on data center development until the Texas Legislature can meet to enact protective laws. She also advocated for regulations concerning water and electricity usage by data centers, and proposed that the facilities should not be subsidized by taxpayers, implying they should use American Union labor. Hinojosa framed the data center issue as a prime example of Governor Abbott prioritizing "moneyed interests" over the well-being of Texans.