Incoming Texas governor pledges data center moratorium
Gina Hinojosa plans to halt new data center permits until regulations are written and end tax subsidies. The move aims to balance economic growth with community agency in a state critical to AI build-out.
Incoming Texas Governor Gina Hinojosa is expected to implement a moratorium on new data centers until regulations are written, end tax subsidies, and ensure electricity and water resources are not diverted from local communities. Hinojosa, who defeated Greg Abbott, stated in August that she does not hate data centers but hates how they take advantage of Texans. Texas, with a GDP of nearly $3 trillion, is the eighth-largest economy in the world and has been a primary location for AI build-out due to cheap gas and renewable energy. Hinojosa’s platform aims to balance economic importance with community agency, suggesting a path for data centers to proceed under stricter, achievable rules rather than outright prohibition.
In California’s 11th district, State Senator Scott Wiener, a lead sponsor of the 2024 AI regulatory bill SB 1047, secured a commanding lead over Connie Chan. Wiener, who has positioned himself as a champion for AI safety, previously advocated for mandatory kill switches and liability for AI developers. The district contains headquarters for OpenAI and Anthropic. The election results in both states highlight a growing political consensus that the era of data center developers ignoring local community concerns is over, and that being pro-data center was a significant vote loser for both parties.