Halt data center projects now, Democratic challenger urges Texas Gov. Abbott
The Democratic nominee for Texas governor, Gina Hinojosa, has called on Gov. Greg Abbott to issue an executive order for a moratorium on new data center projects until the Legislature can implement new protections for Texans. Hinojosa's demands include ending sales tax exemptions for data centers and ensuring local control over their development. Gov. Abbott's campaign indicated the governor has previously called for state regulators to address data center costs and water/electricity use, and has credited his actions for a project in Henderson County being put on hold.
Democratic nominee for Texas governor, Rep. Gina Hinojosa, urged Gov. Greg Abbott to immediately issue an executive order for a moratorium on all new data center projects in the state. Hinojosa, an Austin Democrat, stated that these projects should be paused until the Texas Legislature can convene and pass "basic protection for Texans," highlighting concerns over the industry's significant water and power consumption. She argued that Abbott possesses the unique authority to enact such an order or call a special legislative session.
Hinojosa proposed that the Legislature should ensure data centers are constructed by licensed American union labor, repeal the state's sales tax exemption for data centers, mandate transparency regarding their electricity and water consumption, and grant local communities greater control over data center entry. She criticized Abbott for delaying regulatory action until the next legislative session, which she believes allows data centers to proceed without rules.
Abbott's campaign did not comment directly but referred to the governor's June 10 letter, which directed state regulators to protect Texans from data center costs. In this letter, Abbott vowed to work with lawmakers to require data centers to fund their own electric infrastructure, contribute to Texas' electric capacity, use water efficiently, and annually report their usage. He also advocated for repealing sales tax exemptions and imposing requirements for data centers to reduce their impact on local communities, including a ban on building in "rural Texas neighborhoods." The governor attributed his letter and unfulfilled community expectations to the halt of a data center project in Henderson County, which had faced local opposition over water usage from Cedar Creek Lake.