Texas Hits Brakes on Data Centers — and Elon Musk’s Plans
Summary
Texas governor-elect Gina Hinojosa has pledged to halt new data-center permits until state lawmakers adopt protections for residents. Her proposed rules would address energy and water costs, labor, subsidies, and local input, and could affect plans by Elon Musk’s SpaceXAI to build data centers in Texas.Key Facts
- Hinojosa campaigned on an immediate moratorium on new data-center permits until the Texas Legislature passes new protections.
- Her proposed requirements include skilled, licensed union labor, no nondisclosure agreements, and proof that data centers will not raise household electricity or water costs.
- Hinojosa also proposed ending subsidies for data-center companies and making some water contracts unenforceable if they threaten community supplies.
- In September, Governor Greg Abbott directed the Texas Commission on Environmental Quality to stop issuing new data-center permits while agencies gathered information and conducted audits related to the power grid and water.
- The article says Texas has more operating data centers than any state except Virginia, and that about one-quarter of planned U.S. AI infrastructure is expected to be built in Texas.
- The Information reported that SpaceXAI had explored Texas sites for a large data center and considered converting warehouses for data-center use.
- The article reports that Abbott announced an agreement for SpaceX to spend $16.8 billion on a semiconductor fabrication plant; the provided text ends before giving further details.
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