Texas Governor-Elect Pledges Data Center Moratorium, Challenging Musk's Plans

Texas governor-elect Gina Hinojosa has pledged an immediate moratorium on new data center permits in Texas until the state legislature passes laws protecting residents' water, electricity, and community input, a move that could impact Elon Musk's SpaceXAI expansion plans. Texas hosts more operational data centers than any state except Virginia, with a quarter of planned U.S. AI infrastructure slated for the state. Hinojosa's proposal would scrap subsidies, require union labor, ban non-disclosure agreements, and make water contracts unenforceable if they threaten community supplies. Incumbent Greg Abbott already ordered a permit pause in September, but Hinojosa's plan extends further. SpaceXAI has explored large-scale Texas data center sites, while Abbott previously announced a $16.8 billion SpaceX semiconductor plant. A University of Texas poll found 57 percent of voters oppose local data center construction, and most data center-related ballot measures passed Tuesday favored restrictions.