Texas Gov.-Elect Hinojosa Targets AI Data Center Moratorium

Texas Gov.-elect Gina Hinojosa made a pause on new data-center approvals a major campaign issue, and Deutsche Bank analysts flagged that stance as a fresh risk for Tesla and SpaceX AI buildouts in the state after the midterms, CNBC reported on Thursday.

According to the analysts’ note as cited by CNBC, Hinojosa called for “a moratorium on new approvals until the legislature passes stronger protections on water use, electricity costs, local control, and incentives,” and criticized tax breaks for large facilities.

Investors sold both companies hard in the two days after the vote. SpaceX and Tesla shares were down about 9% and 11%, respectively, on Thursday afternoon, bringing combined market-cap losses to more than $420 billion since Tuesday’s close. By the close of business Thursday, the combined hit was about $456 billion, CNBC said.

Both companies are headquartered in Texas and are expanding AI infrastructure there. They are planning Terafab in Grimes County, a massive campus that would combine a data center with a sprawling semiconductor factory, after breaking ground on the $16.8 billion project earlier this year. Drone footage later showed site work already underway.

SpaceX has also pointed to a “supercomputer” build at its Starbase launch site and company town, according to company job listings cited by CNBC.

Deutsche Bank warned that SpaceX’s Texas compute plans could face delays under a tighter state backdrop, and that capital spending may need to rise to meet stricter data-center rules if they land. The bank also said policy is hard to predict, but that SpaceX could face “incremental headwinds” with Democrats controlling the House and Senate and Texas flipping statewide.

What the report does not settle is how a campaign moratorium would treat projects already in the pipeline. CNBC does not quote Hinojosa directly on Terafab or Starbase, does not say whether those sites already cleared the approval gate she wants frozen, and does not give a legislative calendar for the water, power-bill, local-control, and incentive rules she wants first.

For Tesla and SpaceX, the near-term question is simpler than the politics: which Texas AI sites still need a new approval, and how long a pause would last if the new governor gets one.