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On this page

  • TL;DR: claimed vs verified
  • What is on the record
  • What Abbott has already done
  • The "finish through 2028" claim
  • What would make the claim true
  • Why it matters: Texas is the capacity center
  • Reactions
  • What this means for what you build or pay
  • What to watch next
  • Bottom line
  • Related reading
← Back to blog

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Hinojosa and Texas Data Centers: Can Permitted Projects Finish Through 2028?

Data Centers, AI Policy, Texas, AI Infrastructure, Claimed vs Verified

Part of AI Chips and Infrastructure

A viral post says Texas governor-elect Hinojosa will let permitted data centers finish through 2028. What the Texas Tribune and Euronews confirm, and what is unverified.

Nov 5, 2026·8 min read·Yash Thakker
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Hinojosa and Texas Data Centers: Can Permitted Projects Finish Through 2028?

A post on X is spreading a specific claim: Texas governor-elect Gina Hinojosa will let every currently permitted data center finish construction, which would cover essentially all of 2027 and likely well into 2028, and will require taxes and union labor on newer projects. The detail is useful for anyone tracking AI capacity. We could not find that statement from Hinojosa herself. We could confirm a nearby, and in places different, set of promises.

This post lays out the claim, what is on the record, what analysts say, and what is still unknown.

TL;DR: claimed vs verified

table · 3 cols
ClaimStatusSource
Hinojosa won the Texas governor's raceConfirmedFortune, Texas Tribune
She pledged a moratorium on data center approvalsConfirmed, until the Legislature passes lawsTexas Tribune
She wants union hiring for data centersConfirmed as a campaign priorityTexas Tribune
She wants to protect water supplies and end NDAsConfirmed as campaign prioritiesTexas Tribune
She wants to stop certain tax subsidiesConfirmedTexas Tribune
Currently permitted projects may finish through 2028Not found in her own words. An analyst says permitted projects "will largely proceed"Euronews quoting Eurasia Group
New permits for 2028 and 2029 delivery face taxes and union rulesNot found as a specific proposalUnverified
Rules must ensure consumer energy prices do not risePartly confirmed: she wants Texans not to pay more for power because of data centersTexas Tribune

What is on the record

The most detailed account comes from the Texas Tribune, republished by KFOX. It reports that approvals could stay paused until legislators pass new state laws next year if Hinojosa keeps her campaign promises.

  • The moratorium. "When I am governor I will issue a moratorium, a ban, on all data center approvals until laws can be passed by the Legislature to protect Texans," she said in an October 22 video on X, as quoted by the Tribune. She called for the moratorium to last until the Legislature meets in January.
  • Her priorities for lawmakers. Requiring data center operators to hire union workers, protecting communities' water supplies, and stopping data center companies from using nondisclosure agreements that make it harder for the public to track projects.
  • Power costs and taxes. She said she would push to ensure Texans do not pay more for electricity because of data centers, and to stop tax subsidies that deprive the state of billions in sales tax revenue.
  • Timing. She takes office January 19, and will work with a Democrat-dominated Texas House.
  • Her stance on development. "We can have economic development and we can have protections for Texans. These things are not mutually exclusive," she told Politico in September, per the Tribune.

Fortune reports the same moratorium and subsidy promises, and notes that Hinojosa dismissed Abbott's tough talk as "nothing more than an election year stunt."

What Abbott has already done

Hinojosa takes over a state where the incumbent has already put a brake on the industry. The Tribune says Abbott, who in November 2025 heralded Texas as the "epicenter of AI development," began in August to issue pauses on data center approvals, first at the state grid and then at the environmental permitting agency. The goal was to audit and collect information about the facilities. The grid audit was expected to last until December. Abbott also demanded that data centers pay for their own electrical infrastructure and use water-efficient technology, and promised to pursue ending tax breaks during the legislative session.

Advocates also identified some environmental permits tied to data centers that were approved despite the pause, which forced the permitting agency to shut down its online filing system, the Tribune reports. We covered Abbott's moves in OpenAI's letter to Governor Abbott and the closed-door roundtable report.

Rounded plot of land with a grid and one green square, representing permitted Texas data center sites under HinojosaRounded plot of land with a grid and one green square, representing permitted Texas data center sites under Hinojosa

The "finish through 2028" claim

The viral post says that Hinojosa "explicitly" said all permitted data centers can finish construction. We searched for a transcript, a campaign statement and press coverage that quotes her saying so, and did not find one. What we did find is an analyst's reading. In Euronews, Heather West of Eurasia Group said that Hinojosa's power to go beyond Abbott's temporary, grid-driven pause is "limited," and that "projects already permitted or under construction will largely proceed. The friction hits the next wave: local fights, slower permitting, and pressure to make data centers pay for their own power."

That is consistent with the viral post's direction, but it is not the same claim. An analyst predicting that permitted projects will proceed is different from a governor-elect promising it, and neither gives a date such as 2028. The 2028 and 2029 delivery windows, and a tax and union rule for those windows, do not appear in the Tribune's account of her plan. They may come from a press conference we could not read. Until a transcript or official statement appears, treat the "through 2028" language as unverified.

What would make the claim true

For the post to be accurate, three things would have to hold:

  1. A governor's power to pause approvals does not reach already-permitted projects. That is plausible in law, since a permit is a granted right, but the Tribune notes some actions may need the Legislature.
  2. Hinojosa chooses not to revisit existing permits. That is a political choice that she can state at any time.
  3. A legislative package arrives in 2027 that targets future permits. Her stated plan is for laws to be passed after January, which fits.

A grandfathering promise would also be a smart political move, because it reassures the workers and local governments that depend on projects already under way. But we have not seen her make it.

Why it matters: Texas is the capacity center

Fortune cites Baxtel in saying Texas has more data center capacity operating and under construction than any other state, and a Bloom Energy report projecting nearly 30% of US data center capacity by 2028. Eurasia Group's West told Euronews that Texas, Ohio and Georgia host nearly half of the US AI data center buildout. An exit poll cited by Euronews found that more than half of voters said AI and data centers were a crucial or major factor, and Data Center Watch counts at least 45 projects disrupted in the second half of the year by local opposition.

So even a narrow decision about what happens to permitted projects affects GPU supply. Our wider coverage of election night is in Data Center Election Night, the policy angle in What a blue wave changes for AI, and the industry response in Meta's warning that data centers will be harder to build.

Reactions

The Data Center Coalition's Jess Heck said in a statement, quoted by the Tribune, that the industry "looks forward to working with state leadership along with local officials, stakeholders, and Texas communities to continue building trust and supporting responsible data center growth." Elon Musk, who backed Abbott, posted on X that "Data centers in space looking pretty appealing right now," per both the Tribune and Euronews. A public-interest watchdog quoted by the Tribune described "real anger in communities" across red and blue counties.

What this means for what you build or pay

If you rely on Texas capacity, plan for uncertainty through the first half of 2027. The safest read is that already-permitted sites are less exposed than sites waiting for approval, but that is an analyst's expectation, not a guarantee. Practical steps:

  • Ask your cloud or colocation provider which sites are permitted and when they energize.
  • Avoid single-region plans that depend on a Texas site with an unfinished permit.
  • Expect possible new costs for power and infrastructure, since both Abbott and Hinojosa want data centers to pay their own way.
  • Watch the January legislative session for the actual bill text.
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What to watch next

  1. A transcript or statement from Hinojosa that addresses permitted projects directly.
  2. Executive orders after January 19.
  3. Bill text in the Legislature on tax subsidies, union labor, water and NDAs.
  4. Audit results from Abbott's grid and permit reviews.

Bottom line

Hinojosa's moratorium, union-labor, water, NDA and subsidy promises are confirmed. The claim that she will let permitted data centers finish through 2028, and tax newer ones, is not confirmed in her own words. An analyst expects permitted projects to proceed, which makes the claim plausible. Until she or her team says so on the record, treat the specific dates as a rumor.

Related reading

  • Data Center Election Night: Texas 13.3 GW and ballot results
  • Blue wave: what changes for AI policy and data center moratoria
  • OpenAI's letter to Governor Abbott on a data center pause
  • Abbott staff's closed-door data center roundtable
  • Ohio voters pass data center bans
  • Data center backlash in the midterms

Details are accurate as of November 5, 2026, based on the Texas Tribune, Euronews and Fortune. Statements may change after Hinojosa takes office.

Spotted something out of date? Let us know.

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Yash Thakker

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