Abbott took $9 million from data center donors since July 2025; the November 3 election sets the rules

Data center donors gave Governor Greg Abbott his biggest months right after he moved against their economics, and every Texas office that will write the industry's costs takes the same money. The November 3 election decides who sits in those chairs when the 2027 session negotiates the terms.

Richard TangRichard Tang · 3 min read
Share
Texas Governor Greg Abbott, shown in a close-up portrait, speaks at a press conference in 2026.
1 / 6Slide 1 of 6
Texas Governor Greg Abbott has taken about $9 million from data-center-tied donors since July 2025, a Texas Tribune tally found.

The data center industry's giving to Governor Greg Abbott peaked in the months he moved against it, and the reason is a seat at the table. Every Texas office that will write the industry's costs takes the same money, and the November 3 election decides who holds those chairs 1. The Texas Tribune matched every donor of $25,000 or more and found Abbott has taken about $9 million from data-center-tied donors since July 2025 1. That is about 13% of everything he raised 1.

The crackdowns raised the price of a seat

In June, the month Abbott recommended ending the sales tax exemption data centers enjoy, industry-tied donors gave him $1.5 million 1. In August he paused grid-connection approvals pending a statewide audit, and they answered with $2.8 million, his biggest month of the cycle 1. On September 21 he ordered the state environmental agency to issue no data center permits at all until the grid operator and the water board finish their audits 2.

The ledger runs through every office that sets those costs. Lieutenant Governor Dan Patrick controls the Senate calendar; Comptroller Don Huffines's office approves the exemptions, and most of his industry money came from Brint Ryan, whose firm helps developers win those same abatements 1. Abbott and Patrick now both say the exemption should end 1.

Paying so it is not left out

Jim Henson, who runs the Texas Politics Project at the University of Texas, reads the giving plainly: the industry expects "something akin to a negotiated settlement" and keeps paying so it is not "left out of the discussions" 1. This is the state ledger beneath the national money we catalogued on October 24 1.

Data center money concentrates in the offices that set its costs

$0M$2M$4M$6M$8M$10MGreg Abbott (governor)$9Mthe office that sets the terms of the settlementDan Patrick (lieutenant governor)$1.6MDon Huffines (comptroller)$1MDustin Burrows (House speaker)$0.38M
Data
Value
Greg Abbott (governor)$9M
Dan Patrick (lieutenant governor)$1.6M
Don Huffines (comptroller)$1M
Dustin Burrows (House speaker)$0.38M
Texas Tribune tally of donors of $25,000 or more with direct or indirect data center ties, July 2025 onward. Millions of US dollars.1

What is actually being negotiated

Texas runs more than 300 data centers with 142 more under construction, and the projects asking to plug into its grid now total more than five times the state's record peak demand 3. The exemption costs the treasury more than $1 billion a year, and regulators are already rewriting the rules so large users, rather than households, pay for interconnection 4.

The projects built to survive that settlement are the ones bringing their own power and water: Microsoft+0.64% — Microsoft, up 0.64 percent today is adding about two gigawatts in Pecos on on-site gas, though even that route waits on the air permits Abbott halted 3.

The same trade, priced nationally

New York's one-year pause on hyperscale permits set the template, at least 15 states have weighed their own, and BlackRock's−1.69% — BlackRock, down 1.69 percent today Larry Fink counters that a national moratorium "would mean a recession" 56. With the midterms expected to hand Democrats the House, analysts mark data center operators as the headwind and generation, utility and grid-equipment names as the beneficiaries: the wires get built either way 7. Texas settles its version at the ballot, where Abbott leads Gina Hinojosa 51 to 48 and she has taken one industry check, for $25,000 81.

Who pays gets decided this winter

Demand is the steady term in this equation. The variable is the price of permission: ERCOT's audit lands in December, the Legislature convenes in January, and whoever holds the governor's office, the Senate and the comptroller's desk will set who pays for the grid, the water and the siting fights 3. The industry's own money says it expects to pay that price and keep building.

Get Data Center by email, free

Who is building AI's data centers, and who is paying for them. In our daily email, every weekday.

Loading MSFT…

Reader comments

0 comments

    More in Data Center

    All in this topic →

    Data Center

    A Nasdaq newcomer is selling WEKA's self-measured 1000x claim, weeks after WEKA's CTO left

    WEKA's 1000x and 20x figures, measured only by WEKA, are now load-bearing in a Nasdaq partnership announcement that came eight days after the company's CTO of six years walked out. Neither BIRD's stock nor WEKA's private mark has an independent benchmark behind it.

    Data Center

    Corning bets $585 million on AI fiber, and Monday's earnings decide if it was worth it

    Corning approved a $585 million fiber expansion on AI data-center demand days before earnings that will show whether that demand survives at the price the stock already charges for it.

    Data Center

    Modine reports November 3 with Wall Street at $305 and the tape at $133

    Modine's first results since giving its car business, and its name, to Gentherm land after the close on November 3, with the stock at $133.24 against a $305.67 average analyst target. The print tests whether 90 percent data-center growth can carry 56 times earnings on a falling gross margin, ten days before shareholders vote on the Modexus rename.

    Data Center

    Meta's new share class funds AI, and lets Zuckerberg sell 20% of it for a possible California wealth tax

    Meta's new filing pairs a share class built to raise hundreds of billions for AI with a 20% carve-out letting Zuckerberg sell into it to pay a potential California wealth tax, in exchange for eight years of residency. Shareholders carry the discount.

    Data Center

    Alphabet's $195 billion 2026 capex funds Gemini, and DeepMind gets the compute first

    Alphabet reports October 28 with a class action over Gemini 3.5 Pro's missed schedule, a discounted Argon filling clusters, and Google Cloud reserving compute for DeepMind's own models. One question decides whether the AI build is a Cloud business or a research bill.

    Data Center

    Nvidia guarantees up to $105 billion of OpenAI's Ohio campus; CoreWeave's bonds imply near 63% default odds

    Nvidia's own filings show $36 billion of neocloud backstops, a $105 billion guarantee on OpenAI's Ohio campus and up to $125 billion of residual value promises, while default insurance on its biggest neocloud prices a 63 percent chance of failure. The credit market is pricing the case where the guarantor pays.

    Get the newsletter

    The day's AI and market news, in your inbox every weekday.