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Texas is done with data centers until further notice, new governor says
USA Today • • business
Key Points:
- Texas Governor-elect Gina Hinojosa announced a halt on new data center construction until companies prove they will benefit local Texans, emphasizing the need for laws to protect communities from exploitation.
- Hinojosa criticized the impact of data centers on rural areas, citing concerns about water resource depletion and rising electricity costs, and pledged to give residents a say in future data center developments.
- The governor-elect's stance contrasts with former Governor Greg Abbott’s previous support for Texas as a hub for AI and data centers, a position that contributed to his electoral defeat.
- The recent midterm elections saw widespread voter opposition to data centers, with over 40 cities and towns nationwide passing measures to restrict or ban their construction, reflecting growing public concern.
- Billionaire Elon Musk, a major proponent of data centers and significant donor to Texas Republicans, faces a new political landscape where data center expansion will be more tightly regulated under Democratic leadership.
