Gina Hinojosa calls on Greg Abbott to halt data center construction
Democratic gubernatorial candidate Gina Hinojosa has urged Gov. Greg Abbott to impose a statewide moratorium on data center construction until new regulations are established by lawmakers. This call comes amidst growing public backlash against data centers in rural Texas, prompting Abbott to previously direct regulators to prevent utility cost-shifting to ratepayers and to consider repealing tax exemptions. A data center developer, Diode, recently withdrew a project in Henderson County, citing the governor's directives.
Democratic gubernatorial candidate Gina Hinojosa publicly urged Republican Gov. Greg Abbott to implement an immediate moratorium on data center construction across Texas. She called for a special legislative session to establish comprehensive regulations for these projects, criticizing Abbott for delaying action until after the November midterms despite his executive authority.
Hinojosa's demand is part of a broader initiative among Texas Democrats, including fellow candidates Vicki Goodwin, Sarah Eckhardt, and Clayton Tucker, who are leveraging significant public opposition to data centers, particularly in conservative rural areas. Hinojosa framed the issue as a fundamental question of whether the state serves its citizens or corporate interests.
Governor Abbott's stance on data centers has evolved amidst his re-election campaign, shifting from promoting Texas as an "epicenter of AI development" to vowing to push back against new projects. In June, he directed state regulators, including the Public Utility Commission (PUC) and ERCOT, to ensure that data centers do not pass new electrical infrastructure costs to ratepayers. He also urged lawmakers to repeal data centers' sales tax exemptions and establish rules for their placement. His office cited Diode's withdrawal of a planned data center in Henderson County as evidence of his directives' effectiveness.
Hinojosa dismissed the Diode withdrawal as a minor event, noting that over 480 "large" data centers have requested connections to the ERCOT grid by 2032. Residents like Tom Weeks of Granbury, a lifelong Republican, expressed strong opposition to the constant noise from data centers, stating he is now a "one-issue voter" who will not support Abbott again, believing the governor's recent actions are merely "pandering."