Texas Governor-elect Hinojosa vows stricter rules on data center development

Governor-elect Gina Hinojosa announced that Texas will pause the construction of new data centers until state laws are enacted to protect residents. She told CNN that many facilities have been built in rural areas without adequate regulations, leaving Texans vulnerable to higher water and electricity costs. > "What has happened is data centers have moved into mostly rural communities, and there are no rules and laws to protect Texans and Texans are being taken advantage of," Hinojosa said.

Hinojosa, who won the November 5 election, said the state will still pursue a "strong working relationship" with tech companies, including those owned by Elon Musk, but only on terms that safeguard local interests. She added that the administration remains "pro-business" while ensuring communities have a say in whether data centers are built nearby.

The stance follows a broader national trend, with dozens of municipalities voting for moratoriums or stricter regulations on data center projects. Data center tracking firm Cleanview reports that Texas currently hosts more than 80 operational facilities, the second highest in the United States, with an additional 50 under construction and over 120 planned.

Hinojosa’s position was a central theme of her campaign, contrasting with former Governor Greg Abbott’s earlier comments about Texas becoming an AI hub. Abbott later imposed a statewide moratorium on data center construction, but the measure did not secure his re-election.

National exit polls indicated that concerns over AI and data centers influenced a majority of voters, with 56% citing the issue as a major factor in their congressional choices and 76% expressing opposition to new data center projects in their communities.