President Donald Trump has backed a major expansion of data centers to support the country’s artificial intelligence boom. But a historic Democratic victory in Texas has put one of the largest hubs for AI infrastructure under new political leadership, prompting questions about billions of dollars in planned projects.
Texas Democrats won the governor’s office for the first time in more than 30 years and captured a U.S. Senate seat for the first time since 1988.
The state is expected to surpass Virginia as the country’s largest data center market. It could account for about a quarter of new U.S. data center power capacity through 2030. At least 248 projects are planned in Texas, and Jefferies estimates that 13.3 gigawatts of proposed development could be at risk if Gov.-elect Gina Hinojosa pursues a moratorium.
Opposition to data center construction is growing elsewhere, too. Ohio voters considered 21 ballot questions related to data centers across 18 communities during the midterm elections, more than in any other state.
The political shifts are leading some developers to reconsider where they will put money into future projects. Brittany Kaiser, CEO of Alpha Compute, said the election results had prompted the company and its investors to think about whether to invest elsewhere.
Kaiser said political changes in traditionally Republican states could send planned investments to other parts of the country or overseas, as companies face greater resistance to data center development. There is now more to weigh in making investment decisions, she added.
Moving projects that are already underway is difficult, especially when developers have bought land, arranged power agreements and made major financial commitments. Projects still in the planning stages, however, may be easier to relocate. Alpha Compute has invested in data centers in Canada, Europe and Mexico, where Kaiser said regulatory approvals can be more straightforward.
The debate reflects a growing clash between the federal push to speed up AI development and local concerns about electricity bills and the effects of data centers on nearby communities.
Kaiser called on incoming lawmakers to address those concerns while protecting what she described as a major economic opportunity. She said data center companies should be responsible neighbors and urged lawmakers to adopt practical rules developed with local communities. In her view, outright bans and moratoriums should not be necessary if developers can meet sensible requirements.
