Texas Governor-Elect: Data centers must be suspended until measures to protect the interests of the people are introduced

On November 6 local time, Texas Governor-elect Gina Hinojosa gave an interview to CNN, speaking out publicly on the issue of data centers. Her remarks were brief and direct but have stirred considerable waves in the market.

In the interview, Hinojosa said: "Before we implement measures that genuinely protect the people of Texas, we must stop what we are currently doing."

She then added: "I don't hate data centers; what I hate is the way they take advantage of Texans."

To Musk: Cooperation is possible, but only “on our terms”

During the interview, Hinojosa was also asked about dealings with tech giants.

Her response was: "We can build strong partnerships with Musk and his companies—but it must be on our terms."

This statement set the bottom line for her negotiations: Texas does not reject tech investment but will no longer accept the previous model where developers took the lead and the government simply cooperated.

According to NBC exit poll data, 75% of Texas voters oppose new data centers being built in their communities. During her campaign, Hinojosa accused data center developers of "driving up our electricity costs and depleting our water resources."

Her election itself is already a signal—this Democrat defeated Republican incumbent Greg Abbott with about 52.8% to 45.7% of the vote, becoming Texas’s first Democratic governor in over 30 years, and a core campaign promise was to pause new data center approvals.

Hinojosa video screenshot

When will the moratorium be lifted? The answer points to the legislative session

Hinojosa’s remarks effectively tie the thawing of data center approvals directly to the legislative process.

Goldman Sachs analyst Jonathan LeTolle had previously confirmed that she "will not lift the freeze until more comprehensive regulatory laws are passed."

The 90th Texas Legislative Session will convene on January 12, 2027, with the regular session ending on May 31, 2027. This means the earliest the situation might ease would be around the end of May next year.

It is noteworthy that Texas data center projects were already frozen before the election. In September this year, then-Governor Greg Abbott ordered the Texas Commission on Environmental Quality (TCEQ) to suspend all approvals for data center permits. The market previously expected that if Abbott were re-elected, the freeze would be quietly lifted after the audit was completed. But with Hinojosa’s election, these expectations were completely dashed—the nature of the moratorium shifted from being "linked to an audit" to being "linked to legislation."

13GW left in limbo, 45% of expansion capacity affected

Hinojosa’s remarks came at a highly sensitive market juncture.

Goldman Sachs previously estimated that Democratic victories in various states would result in around 45% of planned U.S. data center expansion capacity facing short-term moratoriums, with Texas accounting for about 25% of that alone. GLJ Research estimates that about 13GW of Texas data center capacity is directly exposed to policy risks—enough to supply power to about 10 million households.

According to Wells Fargo, each 10% reduction in Texas data center capacity would impact nationwide AI capital expenditures by about 1.6%. Using Bloomberg New Energy Finance (BNEF) estimates of about $1.76 billion in monthly AI revenue per GW, if 13GW is delayed for 12 to 18 months, the postponed AI revenue would total between $275 billion and $410 billion.

Other states are watching Austin closely

The direction Texas takes is now more than just its own business.

Wolfe Research analysts have already labeled Texas as "a model state for the anti-AI construction movement". New Democratic governors in Georgia, Ohio, Michigan, and other states campaigned on stricter data center regulations, and Jefferies forecasts that "anti-data center actions will continue spreading to multiple state legislatures through 2027."

Hinojosa will officially take office in January 2027.