Texas governor-elect Hinojosa touts data center protection laws

Texas Governor-elect Gina Hinojosa announced on Thursday plans to draft legislation aimed at safeguarding residents from the potential impacts of data centers, particularly in rural regions. The Democrat, who narrowly defeated incumbent Republican Greg Abbott in the recent midterm elections, informed CNN that data centers have primarily established operations in rural communities lacking adequate regulatory safeguards for Texas residents.

Texas has become a prominent destination for data center development due to its vast energy reserves, affordable land, and business-friendly policies. President Donald Trump's administration has emphasized data center expansion as a national priority, with Trump himself promoting the need for additional facilities. However, public opposition to these projects has intensified due to concerns regarding electricity consumption, water usage, effects on wildlife, and access to federal lands.

Voter opposition to data center development played a significant role in the midterm elections. Abbott had become one of the first Republican governors in the nation to halt new data center connections to the state's electric grid and mandated a comprehensive audit of existing projects. Billionaire Elon Musk supported Abbott during the election, spending $158 million to back Texas Republican U.S. Senate candidate Ken Paxton.

Paxton, however, lost his Senate bid to Democrat James Talarico. Following Hinojosa's victory, Musk reiterated his proposal to construct data centers in space.