Incoming Texas Governor Warns AI Firms: The Data Center 'Free-for-All' Is Over

Texas Governor-elect Gina Hinojosa has warned artificial intelligence companies that the era of unchecked data center expansion in the state is over. In an interview with CNN, Hinojosa stated that data centers have moved into rural communities without rules or laws to protect Texans, asserting that "Texans are being taken advantage of."

She pledged to introduce legislation to reverse this trend, calling for a pause on new data center developments until protections are in place. "We need to stop what we are doing with data centers until we have those protections," Hinojosa said. She emphasized that communities must have a seat at the table to decide if and how these facilities enter their areas. "It is not that I hate data centers. I hate the way they are taking advantage of Texas, and that stops when I'm Governor."

Texas has long been one of the most data center-friendly locations in the US, but recent polls show 75% of respondents oppose building such facilities near their homes. With Democratic candidates winning key races in the mid-term elections, including Hinojosa's victory for governor, there is growing political momentum against rapid AI infrastructure growth.

This shift could impact plans for major AI firms like Anthropic, whose recent filings noted that delays or failures in their complex data center supply chains could significantly affect the company.