Texas Data Centres: Hinojosa Says State Is 'Done' Until Further Notice

Texas governor-elect Gina Hinojosa said on Thursday, November 5, 2026, that Texas is "done with data centers until further notice", declaring that the state will stop approving new facilities until laws are in place to protect Texans. Speaking to CNN two days after voters rejected data-centre projects in 46 of 47 local ballot measures, Hinojosa said the industry had moved into mostly rural Texas communities with "no rules and laws to protect Texans" and that "Texans are being taken advantage of".

Key Points

• Texas governor-elect Gina Hinojosa told CNN on November 5, 2026, that "Texas is done with data centers until further notice".
• She said the state will stop approving new data centres until laws protect Texans, and residents must "have a seat at the table" over whether and how facilities come to their communities.
• "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," she said.
• More than 80 data centres operate in Texas, the second most of any US state, with about 50 under construction and more than 120 planned, according to Cleanview.
• The announcement came two days after voters rejected data-centre projects in 46 of 47 ballot measures, and the same day OpenAI pledged to pay the full power costs of its data centres.

What Happened

Hinojosa made the announcement in a CNN interview on Thursday, two days after her election victory over incumbent Governor Greg Abbott. Asked about the wave of data-centre construction sweeping Texas, she was blunt: the state would stop approving facilities until laws protect Texans. Her complaint was about how projects arrive. Data centres, she said, "have moved into mostly rural communities with no rules and laws to protect Texans", and residents learn about a giant facility only after land deals are done.

She was careful to say her objection is not to the technology itself. "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," she said. She wants Texans to "have a seat at the table to decide if and how these data centers come into their communities". On Elon Musk, whose companies have driven much of the Texas build-out, she said Texas can have "a strong working relationship with Elon Musk and his companies, but it has to be on our terms".

Background and Context

Hinojosa made opposition to data centres central to her campaign against Abbott, who once called Texas the "epicenter of AI development" before walking it back and enacting a statewide moratorium. She is Texas's first Democratic governor of this century, ending more than three decades of Republican control, and she won despite millions Musk poured into Texas Republican campaigns. After her win, Musk posted on X that "data centers in space looking pretty appealing right now".

The stakes are enormous. More than 80 data centres operate in Texas, with about 50 under construction and more than 120 planned, according to Cleanview, and the state holds about 27 percent of planned US data-centre capacity, according to Wells Fargo. Two days before her interview, voters rejected data-centre projects in 46 of 47 local ballot measures, and on the same day OpenAI pledged to pay the full power costs of the data centres it owns.

Texas Data Centres: What a Freeze Would Mean

A freeze in Texas would be the most consequential act yet in the backlash against the AI build-out. Texas is where the largest projects are planned, and a halt would force companies to rethink timelines, sites and budgets nationwide. A single large data centre can use as much electricity as tens of thousands of homes, plus enormous volumes of water for cooling, and rural grids and water systems were not built for that demand.

The jobs argument cuts both ways: construction work is real, but permanent technical jobs are modest, and many go to outside specialists. The risk for the industry is that Texas becomes a template. Candidates who campaigned against data centres were among the biggest winners of the midterms, and other states are watching closely.

Reactions and Quotes

The technology world's reaction has mixed defiance and conciliation. Musk's "data centers in space" post treated the Texas result as a reason to look beyond Earth. OpenAI's compact, announced the same day, promised to pay full power costs and end nondisclosure agreements with officials; chief global affairs officer Chris Lehane said it came from months of talks with communities.

Senator Bernie Sanders has again called for a nationwide moratorium on AI data centres. Hinojosa's position is narrower, but both point the same way. Democrats won a majority of governorships for the first time in 20 years, and data centres were a live issue in several states they won.

Why It Matters

Texas is where the artificial intelligence economy is being built, and a freeze would change the economics of the whole industry. It is also a test of whether democratic politics can still shape a technology boom: for two years, projects have arrived in small towns with little warning, and Hinojosa's election is the clearest sign yet that voters can change the terms. And it matters for household bills: the strongest objection to data centres has been the fear that ordinary people will pay for the power, water and grid upgrades they need.

What Happens Next

Hinojosa takes office in January 2027, and the freeze will be one of her first tests. The immediate question is how it is put into law: by executive order, by legislation, or by directing agencies to pause permits. The next test will be the first project caught by the freeze, as developers with land bought and permits filed argue they should proceed. OpenAI's compact suggests some companies will offer voluntary concessions; others may shift investment elsewhere.

Frequently Asked Questions

What did Gina Hinojosa say about data centres?
She told CNN on November 5, 2026, that "Texas is done with data centers until further notice" and that the state will stop approving new facilities until laws protect Texans.

Is she against data centres altogether?
No. She said "It is not that I hate data centers. I hate the way they are taking advantage of Texas", and she wants Texans to have a seat at the table over whether and how facilities come to their communities.

How many data centres does Texas have?
More than 80 already operate in Texas, the second most of any US state, with about 50 under construction and more than 120 planned, according to Cleanview.

Why did she make data centres a campaign issue?
She argued the facilities moved into mostly rural communities with "no rules and laws to protect Texans", and voters agreed: they rejected data-centre projects in 46 of 47 local ballot measures on November 3, 2026.

When does the freeze take effect?
Hinojosa takes office in January 2027. She has not yet said whether the halt will come by executive order, legislation or a pause on permits.