Texas governor-elect says state will have laws to shield citizens from data centers

Texas Governor-elect Gina Hinojosa announced on Thursday that the state will enact laws to safeguard its citizens from data centers, citing the impact on rural communities. Texas has become a leading region for data center developments due to its abundant energy supplies, relatively cheap land, and pro-business policies. Democrat Hinojosa, who defeated Republican incumbent Greg Abbott in the recent election, expressed concern that data centers have taken over mostly rural communities without any protective regulations in place.

She emphasized the need to halt data center expansion until appropriate safeguards are established, stating that communities should have a voice in the operation of such facilities in their areas. While US President Donald Trump's administration has endorsed data center expansion as a national priority, public opposition has grown, citing worries about electricity demand, water usage, wildlife impacts, and access to federal lands.

Abbott had previously prevented the connection of new data centers to the state's electrical grid and ordered a thorough review of the projects. Hinojosa's campaign promise to suspend new projects has disrupted the state's data center industry. Billionaire Elon Musk backed Abbott in the election and had donated $158 million to promote a Republican US Senate candidate.

Musk, whose SpaceX and Tesla businesses are based in Texas, plans to establish a chip manufacturing facility in the state. Hinojosa has pledged to negotiate with Musk and his companies on her terms, but has requested that no action be taken on the potential sale of Boca Chica State Park to SpaceX until the transition from Abbott to her is complete. SpaceX did not immediately comment on the matter.