Governor-Elect Gina Hinojosa called for a moratorium on data center construction until the Texas Legislature meets next year and passes laws giving local communities more control over construction, according to the report. Analysts say new state rules on where and how data centers can be built appear to be on the way under a new administration.
Michael Webber, an energy policy researcher at the University of Texas at Austin, said a moratorium or the threat of one could push developers to consider other states, since they want speed to power. He said a short pause could help communities, companies and lawmakers find common ground, but he worried a longer halt could hurt the nation's ability to compete with China in artificial intelligence. Webber expects the Texas market to slow in the short term, then speed up again.
Mohammed Islam, a researcher at UT Arlington who advises the City of Fort Worth's Data Center Commission, said he believes many operators will want to work with regulators. The Data Center Coalition said it looks forward to working with state and local officials to support responsible data center growth.