Greg Abbott’s Democratic challenger vows moratorium on data centers

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AUSTIN, Texas — Democratic gubernatorial candidate Gina Hinojosa vowed to issue a moratorium on any new data centers and slammed Gov. Greg Abbott’s (R-TX) handling of Big Tech companies coming into the state.

Hinojosa fielded questions from reporters near the Texas governor’s mansion in Austin on Thursday morning. She held the event in response to Abbott refusing to debate her in the closing weeks of the campaign.

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“When I am governor, I will issue a moratorium on any new data centers and any approvals for any data centers until we can pass laws to protect Texans, so Texans can have a seat at the table to decide if and how data centers come into our community,” Hinojosa said in response to a Washington Examiner question Thursday. “With respect to AI, we need some laws in place to say this is what AI is for, this is what it is not for. It is a tool. It should not be a replacement for human beings.”

Abbott, who called Texas the “epicenter of AI development” in 2025 when he announced a $40 billion investment by Google, has since walked back his position as artificial intelligence and data center construction have exploded into campaign issues this election cycle.

This year, Abbott placed a moratorium on the development of new data centers in Texas until state regulators can audit the proposed sites that want connection to the electric grid. Before his flip, he previously welcomed data centers with tax breaks, but voter concerns over the state’s strained water supplies and power grid led to the recent moratorium.

“We have a situation where these data centers have come into Texas with these generous tax breaks, no requirement that they hire Texans … not even a guarantee for American or Texas jobs,” Hinojosa said at the event, which was forced to relocate shortly before it began because large trucks were positioned to block the area around the governor’s residence.

“They have no restriction on water, no restriction on electricity,” she continued. “People have no say in whether or not they come into their community. The terms of the agreements are hidden by non-disclosure agreements, all to create a product, AI, that is supposed to take all our jobs. That is the reality that Greg Abbott has made in Texas.”

According to KXAN, Texas has more than 300 existing data centers and at least 253 more in the works. The Lone Star State is second behind Virginia as the state with the most operational data centers, according to Pew Research Center.

Hinojosa has pledged to “end costly data centers” throughout her campaign, which she launched a year ago. She requested a special session for the Texas legislature, which meets only once every two years, to end the tax breaks. Hinojosa claimed that Abbott will end his “temporary” moratorium the day after the election.

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Data centers have become a top issue for voters in Texas — and across the country — as many local communities in the Lone Star State have pushed back on the construction of them. A poll from the Texas Politics Project showed 58% of Texas voters were against data centers being built in their community.

“Governor Abbott has been clear that data centers cannot come before Texas families. That is why he directed the [Public Utility Commission of Texas] and [Electric Reliability Council of Texas] to require data centers to pay for their own infrastructure, bring their own power, reuse their own water, and lower residential electric bills,” Eduardo Leal, a spokesman for Abbott, told the Washington Examiner in a statement. “These steps protect Texans from higher costs and negative impacts on their communities. Governor Abbott will continue to work with the Legislature to protect Texans and ensure their voices are heard.”