From Houstonchronicle · · 1m 30s
Texas Data Centers Face Delays Under New Democratic Gov
Texas data centers could see delays and cancellations as Democratic Governor-elect Gina Hinojosa takes office.
In brief
Texas data centers could see delays and cancellations as Democratic Governor-elect Gina Hinojosa takes office. Texas data centers may face delays and cancellations under Democratic Governor-elect Gina Hinojosa's new regulations. Originally reported by Houstonchronicle.
Governor-elect Gina Hinojosa
Gina Hinojosa, the Democratic governor-elect, made reining in data center development a central campaign issue.
“The Greg Abbott corruption tax is why data centers have descended upon Texas”
Elon Musk's Comment
Elon Musk wrote on X that data centers in space look appealing right now.
“Data centers in space looking pretty appealing right now”
Hinojosa's Water and Power Plan
Hinojosa promised to freeze electricity rates and ensure corporations pay their fair share.
“I will freeze electricity rates and make sure the corporations, including the data centers, pay their fair share”
Data Center Moratorium
A moratorium on new data center development is expected to extend into 2027.
“Hinojosa first broached the idea of an emergency moratorium for data centers”
Abbott's Regulatory Actions
Governor Abbott ordered ERCOT to audit data center projects and stopped new permits.
“Two weeks later, Abbott ordered the Electric Reliability Council of Texas to audit all projects”
Industry Impact
Industry experts predict delays and potential cancellations of data centers in Texas.
“I think the calculus has shifted drastically for developers”
Regulatory Changes
The Texas Legislature may require data centers to supply their own power and cover transmission costs.
“proposals that require data centers to supply their own power and cover the costs of any new transmission lines”
Data Center Coalition
The Data Center Coalition says they are willing to negotiate with state leaders.
“The data center industry is committed to advancing America's digital infrastructure”
Project Delays
Developers looking for permits may face delays pushing projects to 2028 or 2029.
“projects slated for 2028 and 2029 multiple years later”
Potential Relocation
Some data centers may move to states without moratoriums like North Dakota.
“they're planning to commit to North Dakota”
Industry Response
Industry experts say the moratorium will weed out speculative projects but keep Texas a leader.
“It'll probably weed out some of the more speculative, less firm projects”
What Happens Next
Texas data centers may face delays and cancellations under new Democratic regulations.
“I think this might be the end of the free-for-all buildup of data centers in Texas”
What matters most
Texas data centers may face delays and cancellations under Democratic Governor-elect Gina Hinojosa's new regulations.
