Gina Hinojosa calls on rival Gov. Greg Abbott to issue moratorium on new data centers
Democratic Texas gubernatorial candidate Gina Hinojosa has called on Gov. Greg Abbott to issue a moratorium on new data center construction until stricter regulations can be implemented. She cites concerns from residents in Granbury and Lubbock regarding health issues, higher utility prices, and water usage, attributing the boom to a 2015 tax exemption signed by Abbott. While Abbott's campaign did not respond to the moratorium call, he announced a proposed data center near Cedar Creek Lake was abandoned for not meeting state standards.
State Rep. Gina Hinojosa, the Democratic gubernatorial candidate for Texas, has publicly urged incumbent Gov. Greg Abbott to enact a moratorium on new data center construction across the state. Hinojosa's demand stems from the current data center boom in Texas, which she attributes to a 2015 state law, signed by Gov. Abbott, that exempts data centers from electricity taxes. She argues that this unchecked growth, fueled by campaign contributions to Abbott from data center interests, is pushing projects through before potential stricter regulations are imposed by the Texas Legislature next session.
During a virtual meeting with reporters, Hinojosa facilitated a discussion with Texans impacted by data center developments. Granbury resident Tom Weeks voiced concerns about severe health issues, including pulmonary embolisms and seizures, which he attributes to Bitcoin mining in his North Texas community. Similarly, 16-year-old Brooklyn Duvall from Lubbock highlighted fears of increased utility prices, excessive water usage, and negative health effects on livestock. Both expressed frustration that their concerns have been ignored by local and state officials.
Despite the concerns raised by residents, some unions, including the International Brotherhood of Electrical Workers and the Texas AFL-CIO, support the data center projects due to the high-paying jobs they create. However, Hinojosa noted that some unions oppose the current regulations that allow for the use of unlicensed electricians amid labor shortages, which she argues poses safety risks.
While Gov. Abbott's campaign did not comment on the moratorium request, the governor did announce that a developer had abandoned a proposed data center near Cedar Creek Lake, southeast of Dallas. Abbott stated that the project failed to meet his standards, emphasizing that "Texas’ expectations are clear: data centers must pay their own infrastructure costs, add grid capacity, and never raise residential electric bills."