The expansion of artificial intelligence data centers in Texas has slowed under new Democratic Governor Gina Hinojosa, who defeated incumbent Greg Abbott. Hinojosa campaigned for a moratorium on new data-center permits to protect communities and manage resource allocation. This policy shift comes as concerns grow about the impact of data centers on Texas’s power grid and rural areas, with Abbott having previously paused new grid connections. More than 120 data centers are planned in Texas, and projects without existing permits or power access could face delays. Decisions by the Texas Legislature, the Public Utility Commission of Texas and the Electric Reliability Council of Texas will determine whether a formal moratorium is imposed.
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