Texas data centers could see delays, cancellations as statewide Dems take office
Gina Hinojosa’s election as Texas governor is expected to extend the state’s existing moratorium on new data center development into 2027. Developers and analysts anticipate delays, cancellations and possible relocations as lawmakers consider stricter requirements for data center water and power use, grid costs and permitting.
Gina Hinojosa’s victory in the Texas governor’s race is expected to prolong the state’s moratorium on new data center development while the Legislature considers new rules. Hinojosa has called for tighter controls on water and electricity use, greater local authority and requiring data centers to cover infrastructure costs. Lieutenant governor-elect Vikki Goodwin has also called for a special legislative session on data center regulation.
Industry analysts said projects without environmental permits or grid connections could be delayed or canceled, while some developers may move work to other states. Giga Energy President Brent Whitehead said his company supports responsible regulation but is diversifying into states without moratoriums. BaRupOn CEO Balaji Tammabattula said a client postponed a Texas campus and instead plans to invest in North Dakota. ERCOT’s earlier forecast of 24 gigawatts of new data center demand by 2031 is now considered at risk, with one analyst estimating that 13 gigawatts of projects could be delayed or lost.