
The impact of newly elected Texas Governor Gina Hinojosa on Texas data centers may not be as negative as it appears. Her requirements—no subsidies, no union labor, no non-disclosure agreements, and proof that household electricity and water bills will not increase—are already standard practices being implemented by major cloud providers when building data centers. As mentioned in the second tweet, the partisan divide over AI infrastructure is not as deep as commonly assumed, and a Democratic administration does not mean a reversal of progress. This is evident from three bills introduced by Democratic lawmakers in 2026: The Ratepayer Protection Act has progressed the furthest and has already passed the House, while the other two remain in committee. The Ratepayer Protection Act provides states with guidance to make their own decisions; The GRID Savings Act mandates federal rules on who pays and how costs are guaranteed; The Power for the People Act has the federal government manage queues and cover part of the costs, while using priority systems and rate design to incentivize data centers to bring their own clean energy and assume greater obligations. Together, these three bills outline the primary future direction for U.S. regulation of AI infrastructure electricity costs—all without advocating for a halt to data center construction. Even if Democrats control both chambers, the mainstream approach remains “build, but pay and assume greater responsibility,” not direct size restrictions. Extreme measures like moratoriums or quotas have not entered these mainstream legislative texts. The most likely scenario: Building on the consensus around the Ratepayer Protection Act, strengthen “must consider” into mandatory cost allocation and financial safeguards (absorbing elements of the GRID Savings Act), potentially adding requirements for dedicated data center rate classes and establishing federal queue or research protocols. Clean energy preferences and labor provisions may emerge as negotiation points, but in a milder form than originally proposed in the Power for the People Act. The final text will be stricter than the current House version but will not fully replicate any single Democratic bill. Collectively, these bills send a clear signal: The electricity costs of AI data centers can no longer be easily socialized. Regardless of post-election power dynamics, regulatory direction is moving toward “who uses power, who triggers upgrades, who bears the corresponding costs”—the only difference lies in the degree of enforcement and accompanying conditions. Thus, future AI infrastructure will demand more and incur higher costs (though electricity-related increases remain a small fraction of overall data center construction expenses), but this is not a step backward.

