Governor-elect Gina Hinojosa plans to stop the approval of new construction permits for AI facilities until the state passes legislation to protect rural communities from rising utility costs and water shortages. The proposed moratorium on approvals will not apply to existing projects that have already secured permits, including most sites scheduled for delivery through 2027. However, the move creates uncertainty for a statewide development pipeline of approximately 34 GW, with major players like Amazon (~5,700 MW) and Google (~4,500 MW) among those with significant capacity lined up in the state.
The incoming governor, the first Democrat to hold the office since 1995, will also seek to end tax breaks for new data centers and mandate the use of union labor. In response, CoreWeave CEO Michael Intrator wrote to Hinojosa pledging the company’s support for the principles of community protection, noting that CoreWeave funds its own substation and transmission upgrades to avoid passing costs to residents. Hinojosa takes office on Jan 19 and will move to establish a new regulatory framework during the 140-day legislative session running from January to May 2027.
