Gina Hinojosa, the newly elected governor of Texas, announced plans to halt approvals for artificial intelligence (AI) data center construction until legal protections for residents are established. As Texas is one of the largest hubs for data center construction in the U.S., this move could significantly impact investments in AI infrastructure by major tech companies.
In an interview with CNN on November 5, Hinojosa stated, "We will push for legislation to protect the people of Texas," adding, "Until we have such protective laws in place, we need to pause all ongoing data center-related activities."
She clarified, "It's not that I dislike data centers. I just dislike how they exploit Texas," and emphasized that such practices would cease once she takes office. This indicates a plan to suspend state approval processes related to data center construction in Texas.
On October 22, she had also warned, "Once I become governor, I will temporarily suspend all data center approvals until legislation protecting Texas residents passes through the state legislature."
Texas is home to the headquarters of Elon Musk's companies, including Tesla and SpaceX, and has become a prime location for various AI companies' data centers. According to local media outlet Texas Tribune, as of September, there are 596 data centers either operational or planned in Texas, a number that continues to grow monthly.
However, data centers have raised concerns among residents regarding increased electricity costs, water supply issues, noise pollution, and land use. Recently, opposition to the construction of AI data centers has been rising across many regions in the U.S.
Hinojosa stressed, "There should no longer be unilateral decisions made without considering the voices of Texas residents. Things will change from now on."
Additionally, she indicated that once in office, she would implement policies that align with the interests of residents against big tech companies. Hinojosa remarked, "The left-right paradigm is outdated. 99.9% of Americans are in the same boat. Essentially, we are up against about 15 billionaire tech executives who are effectively running the government." She added, "This is what the public opposed in this election, and they have given us a mandate for change."
The Democratic Party gained a majority in the Texas House during this midterm election, and with James Talarico elected to the U.S. Senate, there is potential for stronger support for data center regulation policies in Texas.
Meanwhile, the Democratic Party's decisive victory in the midterms, advocating for regulations on AI and data center construction, is expected to hinder the data center expansion policies pursued by the Trump administration. This has raised concerns across the AI industry, contributing to declines in stock prices for semiconductor and related companies in global markets.
As Texas remains a central hub for data center construction in the U.S., the future direction of AI and data center policies in Texas is drawing significant attention from the global AI community.
* This article has been translated by AI.
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