Texas governor-elect Gina Hinojosa signals willingness to work with SpaceX amid regulatory scrutiny

Democrat Gina Hinojosa, who won the Texas governor's race in the 2026 midterm elections, indicated she plans to tighten regulation of new data center projects but expressed openness to cooperating with SpaceX. The company operates its Starbase launch complex near Boca Chica and is pursuing FAA approval for a significant increase in launch frequency.

During a CNN interview on Nov. 5, Hinojosa said the state will extend the pause on data-center permits until lawmakers adopt rules on electricity costs, water use, tax incentives and community impact. She emphasized that Texas remains "a pro-business state" and can sustain a "strong economy, strong industry" while adding resident protections.

"We can have a strong working relationship with Elon Musk and his companies," Hinojosa said, adding that any partnership would be "on our terms."

The Federal Aviation Administration has recently begun a new environmental review of SpaceX's proposed expansion at Starbase, which seeks authorization for up to 100 annual Starship launches and 200 landings, with a later phase potentially doubling those numbers. Regulatory predictability is crucial for the company's goal of increasing launch cadence and reducing costs.

Analysts note that Hinojosa's data-center proposals do not directly affect SpaceX's existing launch operations, suggesting the incoming administration is not poised to block the company's activities. However, state decisions on land access, infrastructure and environmental standards could influence project timelines and expenses.

Hinojosa will assume office on Jan. 19, 2027, facing a split legislature—Democrats control the House while Republicans hold the Senate—requiring bipartisan negotiation for any major policy changes. Investors are advised to monitor both federal and state regulatory developments as they assess SpaceX's long-term prospects in Texas.