Texas governor-elect Gina Hinojosa has pledged to push for an extended moratorium on data center development, arguing that outgoing Governor Greg Abbott's temporary halt is merely an election-season measure that will be quickly lifted. The Democrat, who succeeds the Republican incumbent, has described the pause as "a scam" and insisted that only binding legislation can protect residents.

Election-day reversal predicted as Hinojosa rejects temporary pause

"A temporary moratorium is a scam because Abbott will likely lift it on November 4th, right after the election," Hinojosa said ahead of the election.

As of the report's publication, that reversal had not yet occurred. "The only way Texans are protected is when real laws are passed.

" Abbott, who was historically supportive of data center growth, shifted course amid record grid applications and rising public opposition to the sector. In August, he directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to conduct a comprehensive audit of all data center projects moving through ERCOT's interconnection process.

In September, he then halted all new data center permits from the state's environmental agency until the audit concludes. The move surprised the industry.

"We weren't really expecting it," said Raul Martynek, CEO of Dallas-based developer DataBank.

"The governor is addressing what you're seeing in the country with pushback on data centers, and the fact that it is election season may have something to do with this because, from an issue perspective, it's top of mind for voters."

ERCOT has said it expects the review to finish in December, but Hinojosa has called instead for "an immediate moratorium on data centers to last until the legislature can meet to put in place real protections so Texans can have a seat at the table to decide if and how data centers come into their communities."

Special session demand tied to 'Texans First' legislative agenda

Hinojosa has demanded that Abbott call a special legislative session before leaving office, framing the request as a test of his record.

"To show good faith after inviting data centers to Texas, Abbott must call a special session now. Otherwise, no one believes the arsonist will put out the fire," she said before the election. Her platform, titled 'Texans First Data Center Priorities,' lays out the measures she hopes to enact once any moratorium ends.

Under the proposals, data center projects would be required to create American union jobs.

Companies would be barred from using NDAs and would have to prove that households will not pay more for electricity or water as a result of their operations. Subsidies to data center companies would end, and any water contract signed with a data center would become unenforceable if it threatens a community's water supply. The most consequential element would grant local communities the right to vote on data center projects in their areas.

Red Oak rally and a campaign built on local opposition

Hinojosa made data centers a centerpiece of her campaign, holding a press conference in Red Oak, the site where Diode Ventures plans an 800-acre, 900MW facility.

Diode has since withdrawn a separate data center proposal in Henderson, Texas.

"The people of Texas are being taken advantage of, in a big way, by corporations who are operating under no rules," Hinojosa said in July. "Data centers are coming in and doing as they please, they are guzzling up all our water, guzzling up all our electricity, and the people have no say. They have no power.

That is the Wild West of data centers that Greg Abbott has created in Texas. People need relief."

National backdrop of voter resistance

The governor-elect's position mirrors sentiment well beyond Texas. In votes across the United States, residents have overwhelmingly rejected data center projects and backed moratoriums.

In exit polls, 56 percent of voters said AI data centers were a crucial or major factor in how they cast their congressional vote.