Hinojosa urges Gov. Abbott to pause new data centers until lawmakers act
Democratic gubernatorial candidate Gina Hinojosa is urging Gov. Greg Abbott to impose a moratorium on new data centers in Texas until statewide regulations are established, citing concerns over water and electricity consumption. This appeal follows the announcement of new state regulations requiring data centers to fund transmission infrastructure and reduce power usage on demand. The issue has become a political flash point, with both candidates addressing public opposition to data center development.
Democratic gubernatorial candidate Gina Hinojosa is calling on her opponent, Gov. Greg Abbott, to implement a moratorium on new data centers across Texas until the state legislature can enact comprehensive statewide regulations. Hinojosa argues that corporations are exploiting Texas without proper oversight, consuming excessive water and electricity, leaving local communities powerless. She described the current situation as "the Wild West of data centers" under Governor Abbott's tenure.
Hinojosa's comments coincide with the Public Utilities Commission of Texas and the Electric Reliability Council of Texas (ERCOT) publishing new rules this week. These regulations, prompted by a June 10 letter from Governor Abbott, impose a more stringent process for data centers. Key requirements include that data centers must pay for dedicated transmission infrastructure and undergo a screening process to prevent grid strain. Additionally, they are mandated to quickly reduce power consumption when ordered by ERCOT.
Data center development has emerged as a significant political issue in Texas, with a University of Texas/Texas Politics Project poll indicating 56% public opposition to data center construction in local communities. Governor Abbott has seemingly shifted his stance, recently advocating for a prohibition on building AI data centers near rural neighborhoods. He emphasized that incoming data centers must secure their own funding, power, and water, and contribute to reducing electricity costs for residents, a departure from his previous statements promoting Texas as an AI data center hub.