Texas held elections this week that resulted in significant Democratic victories in energy and utility regulation. State Rep. Jon Rosenthal, a former oilfield engineer and self-described “drill baby, drill Democrat,” won a seat on the three-member Railroad Commission, which regulates the state’s oil and gas industry. This marks the first time since 1990 that a Democrat has secured a position on the commission. Rosenthal defeated Republican Bo French on a platform emphasizing lower energy costs, abandonment well remediation, enhanced monitoring of natural gas systems and data center power management. He has also introduced a novel fee structure on underground wastewater injection from oil and gas operations. Republicans maintained their 2-1 majority on the commission, which they have controlled entirely since 1994.
Data center regulation emerged as a significant electoral issue across multiple states. In Texas, gubernatorial candidate Gina Hinojosa defeated incumbent Gov. Greg Abbott after pledging a moratorium on new data center projects and stricter regulations on their water and electricity consumption and tax incentives. Texas accounts for more than 25% of planned U.S. data center capacity by 2030, with over 474 GW of projects seeking grid connections as of August—more than five times the grid’s existing peak demand capacity.
Democratic victories on data center opposition extended beyond Texas. Keisha Lance Bottoms secured Georgia’s governorship on a campaign for a statewide data center moratorium. In Ohio, Amy Acton defeated Vivek Ramaswamy with a conditional moratorium approach requiring data centers to cover their own utility expenses. Georgia voters also elected Democrats Peter Hubbard and Sheila Edwards to the Public Service Commission, giving Democrats a 3-2 majority on the body that establishes rates for Georgia Power.
Energy prices formed a backdrop to the elections. Regular gasoline averaged $4.15 per gallon on Election Day according to AAA data, compared to $3.80 in 2022, while diesel averaged $6.29. The elevated fuel costs have contributed to higher prices during the current administration compared to previous years, with geopolitical tensions cited as a contributing factor to price movements.
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