What a new Texas Governor could mean for data centers
The election of Texas Gov.-elect Gina Hinojosa could lead to a temporary moratorium or new regulations for data center construction, potentially slowing growth in the Dallas-Fort Worth region. Analysts say Texas is likely to remain a leading data center market, but a prolonged pause could affect developers and the state’s ability to expand AI infrastructure.
Texas Gov.-elect Gina Hinojosa has called for a moratorium on data center construction until the Legislature can pass laws giving local communities greater control over development. The proposal raises questions about whether projects in North Texas could face a temporary halt after she takes office and whether developers might shift projects to other states.
Energy policy researcher Michael Webber of the University of Texas at Austin said a short pause could help communities, companies and lawmakers negotiate new rules, while a lengthy moratorium could undermine U.S. competitiveness in artificial intelligence. Mohammed Islam of the University of Texas at Arlington said operators are likely to work with regulators to keep projects on track. Texas Gov. Greg Abbott had already paused state permits for new data centers while agencies reviewed projects and their effects on the electric grid.