Gina Hinojosa ousts Greg Abbott, becoming Texas' first Latina governor and first Democrat since 1995

Democratic state Rep. Gina Hinojosa defeated Republican Gov. Greg Abbott on Tuesday night, according to an Associated Press race call at 10:17 p.m. ET, reported by NPR. She will be the first Latina to lead Texas and the first Democratic governor since Ann Richards left office in 1995. She takes office in January 2027.

Abbott, first elected in 2014 and seeking a fourth term, conceded in a speech on election night. Click2Houston reported him saying leading the state was "the greatest honor I've ever had." NBC News reported that Hinojosa said Abbott called to congratulate her.

The margin: counts are still moving

Outlets reported different snapshots because votes were still being counted. Click2Houston showed Hinojosa at 53% to Abbott's 46% with 83% of precincts reporting, while KUT in Austin reported about 57% to 41% earlier in the count. We are not printing a final margin until results are certified. Abbott himself said on election night that there were still votes to be counted but that he could not win mathematically. NBC News reported that Abbott's campaign outspent Hinojosa's by tens of millions of dollars.

The business question: data centers and the grid

The one policy fight with a direct line to business is data centers. NBC reported that Hinojosa criticized Abbott's support for data center construction, and that Texas has more than 500 data centers, the second most of any state. In September, Abbott ordered state agencies to stop approving data center permits until a grid audit is finished, as we covered at the time.

What is not known yet: Hinojosa has not taken office, and we have not seen a specific plan from her on whether to keep, lift or tighten that freeze. Until the audit finishes or the new administration says otherwise, a project waiting on a permit is in the same position as before the election. A governor also needs the legislature, and NBC's report did not say who controls it.

Hinojosa also said one of her first actions would be to fire the state's education commissioner, citing declining student performance, and called the result "a mandate for change."

Who feels it first

• Developers and data center operators: the permit freeze and audit are the live issue. Timelines depend on the audit and the next administration's stance.
• Texas independent businesses: state rules on permitting, licensing and energy costs are set by the governor's appointees. Our count shows more than 22,000 independent trade contractors in Texas (see our earlier story), and agency appointments are what they will be watching.
• Home buyers: Realtor.com News is running a piece on what her win means for housing. We could not open it in this run, so we are not summarizing it.

For the national picture, including Senate control and the market reaction, see our overnight update.

Sources: NPR (AP race call), NBC News, KUT, Click2Houston, Realtor.com News (headline only), Office of the Texas Governor via our earlier story. Results are unofficial until certified. This is news and market information, not investment advice.