Texas Gov.-elect Hinojosa Halts 248 Data Center Projects Until New Protections Are in Place
Updated
Updated · Fox News · Nov 6
Texas Gov.-elect Hinojosa Halts 248 Data Center Projects Until New Protections Are in Place
3 articles · Updated · Fox News · Nov 6
Summary
Gina Hinojosa said Texas will stop building data centers until the state enacts protections, arguing rural communities have been exposed to unchecked development without adequate rules.
Texas is central to the U.S. AI buildout: Jefferies estimates 13.3 gigawatts of announced projects could be at risk, and the state is projected to supply about a quarter of new U.S. data-center power capacity through 2030.
The move follows Hinojosa’s campaign pledge to rein in data-center growth after her upset win over Greg Abbott, making her the first Democrat elected Texas governor in more than 30 years.
Federal officials and major AI companies are still pushing ahead elsewhere, with the White House, OpenAI and others saying planned U.S. construction will continue despite local backlash and ballot defeats.
Texas Halts Data Center Boom: 2026 Moratorium, Grid Overload, and the Future of AI Infrastructure
Overview
Texas faced a surge of data center projects that overwhelmed the state’s power grid, leading to audits and a temporary halt on new approvals. Grassroots resistance grew as residents worried about rising utility bills and water shortages, which fueled a political shift in the 2026 election. The new governor responded with a complete statewide moratorium on data center approvals, freezing billions in planned investments and delaying major projects. As a result, developers began moving projects to other states, and some tech firms even considered building data centers abroad or in space. The Texas Legislature is now preparing strict new regulations for 2027.