Industry expanding across the state
AUSTIN — Gov. Greg Abbott this week called for a ban on building new data centers in rural areas and additional regulations during a campaign stop in East Texas.
“We must prohibit them from building (artificial intelligence) data centers in rural Texas neighborhoods. (Data centers) dovetail right into fighting for East Texas values,” Abbott said, according to a statement released by the governor’s office.
Opposition to the facilities is growing because they require large amounts of electricity and water and can be noisy. The governor previously touted Texas as “the epicenter of AI development.”
A recent poll by the University of Texas at Austin found that 62% of rural Texans, who vote heavily Republican, support the measure, according to the release.
Seven counties — Hays, Caldwell, Henderson, Hill, Hood, Somervell and Van Zandt — have now called for either a special session or for the issue of regulating data center construction to be a top priority at the next regular legislative session in January.
At the Tuesday, July 7, campaign stop in East Texas, Abbott repeated the restrictions he has called for, including that new centers need to “bring their own power, reuse their own water, and do it in a way that reduces electricity costs for residents across our state.”
More than 480 “large” data centers have requested permission to connect to the ERCOT grid through 2032, according to the Electric Reliability Council of Texas, which operates most of the state’s power grid.
During his stop, Abbott reiterated points made in a June 10 letter outlining his concerns — and his requirements — for data-center growth.
“I made clear already: Any AI data center even thinking about coming here — they’ve got to bring their own money, bring their own power, reuse their own water and do it in a way that reduces the cost of electricity for residents across our state,” he said. “We must eliminate the tax break they are getting. They must be responsible for funding their own projects here in Texas. We will get that done.”
In the June 10 letter, Abbott directed the state’s Public Utility Commission to ensure data-center development “does not come at the cost of Texans and our local communities,” and requested the agency to minimize adverse impacts on local populations.
