Texas election results force delays on 13 gigawatts of planned AI data centers
Voters approved 38 out of 44 data center restriction measures across ten states, shifting the regulatory landscape for major AI infrastructure projects.
By Jonathan Reed ·
For residents of Texas and nine other states, the ballot results from last week mean a longer wait for new data centers to come online. Voters overwhelmingly approved measures designed to limit the expansion of artificial intelligence infrastructure, signaling a sharp shift in local sentiment toward the industry.
Redbud Consulting tracked 44 ballot measures related to data centers across ten states. Thirty-eight of those measures passed, including numerous moratoriums and bans. Only one measure allowed a specific project to proceed, and that victory still required developers in a North Dakota city to fund independent reviews and hold public hearings for future expansions. Analysts indicated that these new rules will not disrupt projects currently under construction or approved through 2027. The changes will primarily affect future builds scheduled for 2028.
The most substantial impact comes from the Texas governor’s race. Democratic challenger Gina Hinojosa defeated her opponent, a result that industry watchers described as a major setback for the state’s role in the national AI buildout. Texas was projected to account for more than 41 percent of new data center capacity in 2028. With Hinojosa now in charge, developers face what Bloomberg called a worst-case scenario for their timelines.
Hinojosa intends to pause projects until new laws address impacts on water, electricity, air quality, and property rights. Bloomberg reported that approximately 13 gigawatts of planned data center capacity in Texas are now exposed to these delays. Gordon Johnson, an analyst at GLJ Research, noted that projects with power, permits, and steel in place will continue. However, those with power but lacking state environmental permits should expect slips of 12 to 18 months.
Some developers may relocate projects to Louisiana or Georgia, or cancel them entirely. Johnson stated that Hinojosa would impose a moratorium until legislation gives communities a voice and ends tax incentives for data centers. He added that the key question is how long that pause will last. Libby Cantrill, head of public policy at PIMCO, agreed that even if statewide moratoria are not enacted, the process will slow. She expects more time will be needed to secure permits, and developers will have to make greater concessions to local communities.
The immediate effect is a pause in the rapid expansion of AI infrastructure in key growth states. The new regulatory environment requires developers to engage with local concerns before breaking ground on new facilities.
