Texas' new governor: “Data center work must stop ... protections for residents first”

[Financial News] The new governor of Texas, the largest hub for AI data center investment in the United States, said data center-related projects should be halted until laws protecting residents are in place. A shift in Texas' pro-business policies is expected after she also moved to block Elon Musk-led SpaceX from buying state park land.
Democrat and Texas governor-elect Gina Hinojosa said in a CNN interview on the 5th (local time), “Data centers have mostly been built in rural areas, but there are no rules or laws to protect Texas residents.”
Hinojosa stressed that she would put laws in place to protect residents and that work under way on data centers must be halted until those safeguards are in place. She also said local residents should be able to take part in decisions about whether data centers operate and how they do so.
Hinojosa defeated incumbent Republican Gov. Greg Abbott in the midterm elections on the 3rd. During her campaign, she also pledged to halt new data center projects, raising concerns in the industry. She is scheduled to take office on January 19 next year.
Texas has grown into a global center for data center construction, thanks to its abundant energy supply, low-cost land and pro-business policies. But residents are increasingly pushing back over the massive consumption of electricity and water and the destruction of wildlife habitats.
As the Trump administration makes expanding data centers a national priority, Texas' policy shift could also affect investment in U.S. AI infrastructure.
Hinojosa made clear that Musk, too, would have to abide by the new state government's conditions. Musk supported Gov. Abbott in this election and said he had spent $158 million just to support Ken Paxton, the Republican candidate for the U.S. Senate in Texas.
Tesla and SpaceX, both led by Musk, are headquartered in Texas, and Musk is also pursuing a semiconductor manufacturing project there.
Hinojosa stressed that Musk could maintain close working ties with her and his companies, but would have to comply with the conditions set by the new administration.
She has also put the brakes on SpaceX's plan to buy state park land. According to Texas media, last month the state discussed selling land at Boca Chica State Park to SpaceX.
At a press conference that day, Hinojosa said she had called the head of the Texas Parks and Wildlife Commission and asked that no action be taken on the matter during the transfer of power from the Abbott administration to her own.


[email protected] Lee Seok-woo, International Affairs Specialist Reporter