Democratic data center moratorium threat to Texas and US AI infrastructure build-out

Goldman Sachs warns that Democratic gains in state and local elections could bring temporary construction moratoria affecting 45% of planned US data center capacity, with Texas alone about 25% of planned additions, according to a report on X by Rohan Paul.

Jefferies estimates 13.3 GW of announced Texas projects are at risk after Democratic state Rep. Gina Hinojosa campaigned on halting new permits until safeguards for power, water and local communities are in place.

A later X report by Rohan Paul says Hinojosa unseated Governor Greg Abbott, and Nebius Group fell as much as 5%, though Nebius discloses no data centers in Texas. Wells Fargo estimates Texas holds 27% of planned US data center capacity. That report also says Abbott had frozen state data center permits in September until a grid audit expected in December. Neither report's election result or moratorium outcome has been confirmed by an independent source in the material provided.