The incoming governor of Texas will halt the issuance of new construction permits for the state’s data center industry until new state laws are established to regulate the sector. Gina Hinojosa plans to mandate that all newly permitted facilities pay taxes and be built using union labor, while pledging that developers must guarantee that projects do not increase electricity prices or reduce water availability for local residents. The proposed moratorium on approvals will not apply to facilities that have already secured permits, a group that Hinojosa said includes most data centers scheduled for delivery through 2027 and many into 2028.
The freeze is intended to remain in place until the state legislature can pass a new regulatory framework, with the next legislative session scheduled for 140 days between January and May 2027. In response to the proposal, CoreWeave sent a letter to the governor-elect seeking to collaborate on the development of its current and future projects in the state. Hinojosa, the first Democrat to win the Texas governor’s race since 1995, told CNN she is pro-business but believes current expansions in rural communities have taken advantage of residents who lack a seat at the table.
