# 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.
- Title: Texas Data Centers Face Delays Under New Democratic Gov
- Summary: Texas data centers could see delays and cancellations as Democratic Governor-elect Gina Hinojosa takes office.
- Keywords: gina hinojosa, democratic texas, data centers, water usage, power usage, regulation, texas legislature, electricity rates, data center moratorium, texas governor, Houstonchronicle
- Source: Houstonchronicle — https://houstonchronicle.com/business/economy/article/democratic-texas-data-center-hinojosa-meaning-22511688.php
- Read time: 1 min
- Topics: gina hinojosa, democratic texas, data centers, water usage, power usage, regulation, texas legislature, electricity rates, data center moratorium, texas governor, news, local
## 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
## Key takeaway

Texas data centers may face delays and cancellations under Democratic Governor-elect Gina Hinojosa's new regulations.