Texas data center expansion may be at risk after Democrat victories, MIT Technology Review says
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Texas is the fastest-growing data center market in the US and hosts major AI infrastructure projects. MIT Technology Review says Democrat James Talarico’s Senate victory, Gina Hinojosa’s win for governor and Democrats’ takeover of the state House could put that expansion at risk. Hinojosa, who supported data center tax breaks in 2023, began advocating a moratorium during her campaign; on September 21, Greg Abbott directed a state regulator to halt data center permits.
Projects under construction include Stargate Frontier, projected at 1,820 megawatts, and Nexus Hubbard, planned at 6,400 megawatts and intended mostly to serve Anthropic. Banks and lenders are already becoming more selective, while voters supported measures opposing data-center-driven increases in electricity bills and some bans on new facilities. Decisions depend on an interplay among city governments, county officials and state offices.
Why it matters · editorial interpretation
Electoral and regulatory decisions in Texas could affect AI infrastructure expansion as banks and lenders become more selective. The case also highlights how electricity costs and decisions spread across multiple levels of government shape the planning of these projects.
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