Texas Gov.-elect Gina Hinojosa pledged to introduce restrictions on large AI data-center projects, arguing communities need stronger say over water, power, and land use.
The promise lands amid a national backlash that investors say helped trigger this week’s technology sell-off.
Hinojosa framed the policy as pro-worker and pro-grid reliability rather than anti-innovation, saying Texas can grow tech without blank checks to hyperscalers.
Industry groups warned permitting delays could push investment to other states or overseas and slow AI infrastructure buildout.
Environmental advocates cheered the shift, citing stress on ERCOT and local aquifers from power-hungry campuses.
Local ballot measures across the country similarly targeted data centers, amplifying political risk for the sector.
Wall Street analysts said state-level moratorium threats may matter more to valuations than federal rhetoric alone.
Hinojosa’s team said draft legislation will be ready for the next Texas legislative session.
