Hinojosa calls on Abbott to halt new data centers in Texas
Democratic Texas governor candidate Gina Hinojosa urged Gov. Greg Abbott to enact an emergency executive order for a statewide moratorium on new data center development, citing concerns over water resources, rising utility bills, health impacts, and lack of local control. Her call was supported by Texans from various communities, including El Paso, Henderson County, and Granbury, who shared grievances about existing and proposed data centers. While Abbott declined to comment on the moratorium, his office had previously directed utility commissions to protect ratepayers from data center costs and noted a recent project near Cedar Creek Lake was dropped due to community expectations.
Democratic Texas governor candidate Gina Hinojosa has publicly called on Governor Greg Abbott to sign an emergency executive order implementing a statewide moratorium on new data center developments. During a virtual news conference on Thursday, July 23, Hinojosa articulated concerns about data centers' impact on municipal water sources, rising utility bills, and potential health issues for residents. She emphasized that Governor Abbott possesses the sole authority to enact such a moratorium, which she believes should remain in effect until the legislature can ensure that all new data centers are constructed by licensed American union labor and that local communities have more control over development.
The news conference featured testimonies from Texans across the state affected by data centers, including residents from El Paso, Henderson County, Garden City, McCamey, and Granbury. Mary Woodruff of El Paso highlighted a lack of community say in data center projects, increased utility rates, and what she described as excessive tax abatements for developers. Cheryl Shadden and Tom Weeks, residents living near Marathon Digital's Bitcoin mine in Granbury, recounted daily noise disturbances, significant water usage from the Brazos River and Lake Granbury, and various health issues, including a pulmonary embolism, which they attribute to the facility.
Governor Abbott's office did not comment directly on Hinojosa's moratorium proposal when contacted by The El Paso Times. However, a campaign spokesperson for Abbott provided a June 10 letter sent by the Governor to the Public Utility Commission of Texas and the Electric Reliability Council of Texas. In this letter, Abbott urged these bodies to take immediate action to safeguard residential ratepayers from the escalating costs associated with data center expansion. He also stated that data centers must operate in ways that reduce costs for consumers, conserve water, and respect community needs.
Hours before Hinojosa's announcement, Governor Abbott released a separate statement confirming that Diode, a Kansas-based developer, would not proceed with a proposed data center near Cedar Creek Lake in Henderson County. Diode informed Henderson County officials that the project did not align with the Governor
’s directives or local community expectations, illustrating a direct impact of community sentiment on a data center project.