Texas data centres now face a sharp policy turn. Governor-elect Gina Hinojosa won her race after beating Greg Abbott, and she has vowed to halt new projects.
Why Are Texas Data Centres Facing a Halt After Hinojosa’s Win?
Texas offers plentiful energy supplies, relatively cheap land and a pro-business policy. That mix drew **Meta**, **Google** and **Microsoft**, which have all announced major data centre projects in the state over the past two years.
Hinojosa’s pledge goes further than Abbott’s actions. She wants to ban all data centre approvals until the state legislature passes laws that give Texans a say.
How Much Is at Stake on the Texas Grid?
On August 3, Abbott became one of the first Republican governors in the US to halt the connection of new data centres to the state’s electric grid. He also ordered a comprehensive audit covering power demand, environmental impacts and tax breaks.
- 400 gigawatts: projects that the grid operator ERCOT was tracking seeking to connect, roughly what it would take to power the entire US South
- Tens of billions of dollars: data centre projects planned in Texas now in jeopardy
- Hundreds of millions of dollars: grid deposits paid by data centres, with doubts over whether they will be returned
- End of 2026: expected conclusion date of the audit
Abbott has also penalised data centre water violations retroactively. He temporarily banned the state from issuing air permits for the projects.
Abbott did not issue a formal moratorium. Some of his measures, including the air permit ban and the audit, carry near-term expiry dates.
What Do Voter Polls Say About Texas Data Centres?
A Reuters/Ipsos poll found 42% of registered voters said limiting data centres used to power AI was very important or the most important issue for them. An October University of Houston poll found 79% of likely Texas voters supported limits on the number of data centres in the state.
Nationally, 76% of voters said they opposed a new data centre in their community, according to an NBC and SSRS exit poll. Elon Musk, who supported Abbott, had spent US$158 million to promote Texas Republican US Senate candidate Ken Paxton alone.
Will Developers Shift Projects Away From Texas?
Brittany Kaiser, CEO of data centre developer Alpha Compute, said developers without signed contracts and financing are more likely to look at Canada, Mexico and Europe. She said a lot of companies will invest in “very red states and purple states” because it looks like less political risk.
Austin McCarty, a Texas data centre attorney with K&L Gates, expects some projects to be delayed or developers to exit the state. Others may speed up completion before new restrictions take hold.
The Data Center Coalition, which represents Big Tech and other developers, said its members will keep building in Texas while working with state and local governments.
What Does This Mean for Bursa Malaysia Investors?
The source does not name any Bursa Malaysia-listed company, so no Malaysian figures are assigned here. The clearest read-across is that US state policy on power, water and tax breaks can change within months.
Investors tracking technology names can compare filings using AI Stock Analysis for Malaysians. Always do your own research before making any decision on Bursa Malaysia stocks, and verify company announcements directly on Bursa Malaysia’s website.
Key Takeaways
- Hinojosa has pledged to halt new Texas data centre approvals until the legislature passes laws.
- ERCOT was tracking more than 400 gigawatts of data centre projects seeking grid connection.
- Texas accounts for 25% of planned US data centre capacity, per Goldman Sachs.
- Abbott’s audit runs to the end of 2026, with no formal moratorium yet issued.
Frequently Asked Questions
Has Texas banned new data centres?
Not yet. Abbott did not issue a formal moratorium, but he halted grid connections for new data centres on August 3. Hinojosa has vowed to ban all approvals until the state legislature passes new laws.
How many gigawatts of data centre projects is ERCOT tracking?
ERCOT said it was tracking more than 400 gigawatts of data centre projects seeking to connect to the grid when Texas halted new connections. That is roughly what it would take to power the entire US South.
What share of US planned data centre capacity is in Texas?
Texas accounts for 25% of planned US data centre capacity, according to a Goldman Sachs note. The note also said new Democratic governors in Texas, Georgia and Michigan could end industry tax breaks.
Are Texas data centre companies listed on Bursa Malaysia?
The source does not name any Bursa Malaysia-listed company. Check each company’s announcements on Bursa Malaysia’s website before drawing any conclusion for your portfolio.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
Related Articles & Resources
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,300+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
