Texas was the new epicenter of the AI data center buildout. That might be kaput.
Texas has been the fastest-growing data center market and central hub for major tech AI buildouts, but recent political shifts threaten this position. Governor Abbott halted data center permits in September amid bipartisan opposition. The incoming governor, Hinojosa, campaigned on imposing a full moratorium rather than supporting tax incentives as she did in 2023. Industry insiders at a recent conference expressed concern that Texas's advantage as the easiest place to build may have ended.
Key points
- Texas faced political shifts limiting data center expansion
- Abbott halted permits in September; new governor favors moratorium
- Industry sees major risk to Texas's competitive advantage in AI infrastructure
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