Governor-elect Gina Hinojosa vows to ban future data centers in Texas

HOUSTON, Texas (KTRK) -- Governor-elect Gina Hinojosa is promising to ban and pause construction of new data centers to "protect Texans." Still, a political expert says the ban will apply only to new projects, not those already operating or under construction.

Hinojosa said she wants rules and guidelines for data centers, which are powering the artificial intelligence boom. In a new interview, she said data centers and community protections can go hand in hand.

"We have always been a pro-business state in Texas, but what changes now with me as governor is it has to be a partnership that benefits Texans," Hinojosa said. "Right now what has happened is data centers have moved into mostly rural communities, and there are no rules and laws to protect Texans, and Texans are being taken advantage of."

Nancy Sims, a political science lecturer at the University of Houston, said Hinojosa can really only take action on future data centers.

"You can't really freeze mid-construction," Sims said. "They've been granted their permits. They've been granted their tax abatements. And you can't, as governor, go in and repeal those right away. What she can do is put a moratorium on new data centers."

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Sims also noted the broader landscape Hinojosa is stepping into.

"Greg Abbott gave the richest taxpayer handouts to data centers of any state in the country, invited them all into Texas; there is now this gold rush into Texas, and there are no rules," Sims said.

Investors reacted negatively to Tuesday's election results nationwide. Stocks tumbled Thursday but began bouncing back Friday.

Hinojosa has outlined goals for the next legislative session on data centers, including requiring American union jobs, creating full transparency, lowering costs for Texans, making data centers pay for themselves, and putting water and power for Texans first.

Sims said Hinojosa will also be able to appoint leaders overseeing permit processes, even with a Republican-controlled Senate.

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"I think that you will see Gina Hinojosa make changes at the Public Utility Commission, at the Texas Council on Environmental Quality," Sims said. "These areas that have been issuing the data center permits will change."

In a campaign video before she won, Hinojosa symbolically burned the law allowing tax breaks for data centers.

"It's time to burn it to the ground and elect a governor who will work for the people of Texas," she said in the video.