Gina Hinojosa Ousts Greg Abbott, Becomes Texas’ First Latina Governor

Democrat Gina Hinojosa was elected governor of Texas on Tuesday, defeating three-term Republican Gov. Greg Abbott, the Associated Press reported. She will be the state’s first Latina governor and its first Democratic governor since Ann Richards, who was elected in 1990.

A concession

Abbott conceded late Tuesday, calling Hinojosa and telling supporters that mathematically his campaign would not be able to win, according to Yahoo Finance’s account of his remarks. The AP declared Hinojosa the winner at 11:17 p.m. Eastern time.

Hinojosa is a state representative from Austin. She was widely seen as an underdog when the race began against one of the nation’s most prominent Republican governors and a close ally of President Donald Trump.

The data center issue

Hinojosa made data centers a central part of her campaign. She called for a pause on new data center projects until the Legislature passes protections for water and power use, an end to related tax breaks, and a greater say for local communities, according to her campaign platform and reporting by Fast Company.

Texas accounts for roughly a quarter of planned US data center capacity, according to an analysis by the investment bank Jefferies cited by The Wall Street Journal.

Abbott had promoted Texas as a hub for the industry. Late in the campaign, he ordered the state environmental regulator to pause permits for data center projects pending a review of the power grid, a move Hinojosa called an election-year pause.

What she can and cannot do

A Texas governor’s powers are limited. Hinojosa can direct state agencies and decide whether to call special sessions, but ending tax exemptions or writing new rules requires the Legislature, which remains under Republican control. The Legislature convenes in January, and the new governor is scheduled to be sworn in later that month.

Market reaction

Investors reacted quickly. Shares of some companies tied to data center construction, as well as Musk-led Tesla and SpaceX, fell on Wednesday, CNBC reported.

The bigger picture

Hinojosa’s win was one of several Democratic pickups in governor’s races on Tuesday, which gave the party a majority of governorships for the first time in 16 years, according to NBC News. Her early decisions on agency appointments and data center permits will be closely watched by business leaders across the country.

Sources: Associated Press, CNBC, NBC News, The Wall Street Journal, Yahoo Finance.