Data centers in Texas

"STEERS is a portal that TCEQ uses to rubber stamp construction approvals. It seems like they forgot about it and the portal has been quietly issuing approvals since the governor's order for a pause, including for OpenAI and Amazon this Monday and Tuesday."

"If the TCEQ and the governor's office want to play word games, you know, that's fine. Texans are tired of games when it comes to data centers. And what they need are real protections and real laws in place."

"We understand the state's going to have to speak to the data center issue. But leave a lot of regulation of what it looks like, how it functions in each and every one of our localities to the local government."

"there's no oversight, no regulation"

"Data centers are not hurting for funds. I'm not a huge fan of incentives anyway. As the city of Fort Worth, we have to be very careful with those."

Hook said she wants to put a stop to the construction of artificial intelligence data centers in TX-21.

Sid Miller called for a temporary moratorium on new hyperscale data center developments

If she wins, Hinojosa told me, she would issue a moratorium on all data center permits until the Legislature can codify regulations.

During his interview, Nair said he is concerned about the amount of resources required by large scale data centers, particularly those supporting artificial intelligence.

Abbott has called for eliminating sales tax breaks and other unnecessary incentives for data center facilities

Abbott said data centers should pay for the electrical infrastructure they need, use water efficient cooling systems, report their electricity and water consumption and limit noise and other disruptions

Gov. Greg Abbott said he wants the Legislature to put his restrictions on data centers into law next year

Goldman said he sees data centers as a state and local issue.

At the press conference, Hinojosa called out Abbott’s data center theatrics as nothing more than a lame campaign promise, as nothing has changed for Texans suffering the consequences of unfettered data centers coming into their communities.

"Greg Abbott’s moratorium on data centers is just words"

"We still have Texans who are against big economic powers in our communities that are having to fend for themselves because Greg Abbott invited the data centers into Texas with the richest tax breaks in the country."

Brandon Herrera: Did not respond Katy Padilla Stout: I have called for a moratorium on new data center construction until Congress enacts meaningful legislation to protect our water resources, electric grid and taxpayers.

"I was actually up in Abilene meeting with residents, Democrats and Republicans alike because they are building three giant data centers in Abilene. ... And so I've rolled out a plan to crack down on these giant data center companies. I've said that we got to force them to pay for their own energy instead of jacking up our utility bills. We got to force them to recycle their water so they are not exacerbating the water crisis here in Texas, and force them to get the consent of the people who live in these communities before they start building."

"Hold data centers accountable and stop them from jacking up our utility bills: End sweetheart tax deals for big tech companies, guarantee large energy users like data centers fund the infrastructure improvements they need rather than passing those costs on to consumers, require new data centers to use a closed loop system to reduce water consumption and pollution, set minimum federal requirements for new data center projects to protect our grid, environment, and jobs and ensure transparency, and empower local communities to decide whether they want a data center in their town."

Gina Hinojosa, Democratic gubernatorial nominee, critiqued data center expansion and called for strict legislative guardrails at a Dallas press conference with North Texas residents.

San Antonio Councilman Ric Galvan is advocating for data centers to only be allowed to use recycled water and supports Proposal 2

James Talarico's campaign ad released October 12 accused Ken Paxton of providing billions in tax breaks for data centers and receiving nearly half a million dollars in donations from data center companies.

Jet Parker with Save Rural Texas called on the governor to order the Public Utility Commission to release data center location information

Justin Smiley, strategic planning director at SPS Regulatory, said large loads or data centers will pay for their transmission costs and generation costs, and must file a large load tariff

Gina Hinojosa, Democratic nominee for Texas governor, accused Governor Greg Abbott of benefiting wealthy interests through data center tax breaks.

Pfluger said states and localities should decide on data centers rather than the federal government.

Reynolds said Congress should also shield counties from lawsuits by data center developers, because local governments are afraid of being sued by billionaires.

Trump begins a 32 day campaign blitz in Texas and Oklahoma to support Republican candidates

Burge said federal regulation for noise, environmental pollution and long term water supply capacity should be required prior to building data centers.

Shehla Faizi, Green Party nominee for Texas comptroller, called for transparency on data center construction, stating the state lacks concrete data on job creation benefits from AI data centers.

John Arnold, Arnold Ventures Co founder and Co Chair, discussed why data centers have become a lightning rod topic ahead of midterm elections.

James Talarico, Democratic Senate candidate, said data center construction in Texas should not be allowed to contribute to the state's ongoing affordability crisis and that data centers should not be allowed unless they can meet community demands, pay for their own energy and water, and get community consent.

Talarico said he has not taken campaign donations from data center companies, while his opponent Ken Paxton has taken nearly half a million dollars from data center companies.

Ken Paxton's Texas First Data Center Plan combines federal legislation with state level support, including prohibiting Chinese technology in data centers, criminal liability for AI safety violations, supporting the DATA Act, and backing Abbott's proposals for noise/light controls, traffic planning, rural neighborhood restrictions, sales tax exemption repeal, and closed loop water systems.

James Talarico's Hold Data Centers Accountable Plan would repeal tax incentives, give local residents input on construction, require AI companies to pay for electricity and water infrastructure, hold data centers accountable for water pollution, and create an AI Dividend.

Roxanne Marquis, AI Infrastructure Strategist, stated that data center site selection is shifting toward power first development, with the critical question now being where infrastructure can become operating capacity on the customer's timeline.

James Talarico's campaign called for ending tax abatements for data centers, empowering local residents, holding data centers accountable for water pollution, and requiring companies to pay for their own infrastructure

Roxanne Marquis said data center site selection is shifting from land first to power first development strategies, with developers evaluating land, utility interconnection, transmission, generation, fuel, water and fiber as interconnected components

Ken Paxton, Republican nominee for U.S. Senate, said there is plenty of open space in Texas for data centers and backed continued development with conditions

Roxanne Marquis states that for very large AI and high performance computing projects, land and power can no longer be evaluated independently, and developers increasingly have to understand the entire infrastructure system required to turn a site into operating compute capacity.

Paxton announced he will investigate Texas data center developments that have not responded to audits regarding water usage.

Johnson Controls' integrated thermal management approach can reduce non IT energy consumption by up to 50% compared with conventional cooling methods.

Frank said lawmakers expect to revisit data center siting during next legislative session and likely put legislation in place restricting data centers next to homes

Roxanne Marquis states that the question for data center site selection is no longer simply whether power infrastructure is near the property, but whether the site provides a credible pathway to deliver the required power when the customer needs it.

Paxton predicted data center industry would eventually become an economic boom for Texas

Rep. James Frank (District 69) attended community meeting about proposed Google hyperscale data center in northern Archer County

Paxton called for data centers to recycle their own water to not worsen water problems

Paxton said data centers must provide their own power and cannot use the Texas power grid or raise rates for other customers

Chase Dowling, founding power systems engineer at Base Power, says siting matters more than volume for Texas data center boom and transmission.

Ken Paxton said data center development is necessary to compete with China in artificial intelligence

Ken Paxton, Texas Attorney General, said there is plenty of open space in Texas for data centers and supported further development

Gov. Greg Abbott says Texas is slowing data center development while the state gathers more information about water use, power demand and permits

Governor Abbott received $21 million from data center interests

Miller called for a one year moratorium on data centers in Texas

Abbott told supporters he wants the legislature to pass rules and regulations that will empower local governments to be decision makers about whether data centers will go up in their county or city.

Bauer stated water remains a critical concern for agricultural members, with many data centers requiring water for cooling and creating competition for limited water supplies.

Stephen Bauer, State Director District 10 Texas Farm Bureau, testified to Texas House Committee on State Affairs that data centers should pay their own infrastructure costs and not burden rural communities.

Abbott signaled push to eliminate remaining financial incentives for data center industry in next legislative session

Local communities are finding they may have limited power to stop the projects.

Attorney General Ken Paxton stated he would be investigating Texas data center developments that have not yet responded to the required water use survey.

Opposition grows across the political spectrum to data center projects.

Hundreds of new data centers are planned across Texas, many to meet the computing demands of artificial intelligence.

Council Member Amanda Rodriguez said 'I think there are some fights worth setting the precedent and trying' regarding San Marcos data center ban

State Rep. James Talarico said Paxton allowed data centers to operate without regulation for more than a decade before changing his position.

Grimes County Judge Joe Fauth said Terafab project is classified as chip manufacturing plant with an on site data center only to aid the manufacturing business.

State Rep. Shelley Luther said lawmakers are preparing to partner with governor to deliver on property tax and data center priorities

Sherman Mayor Shawn Teamann said residents raised concerns about cost of living, gas, insurance, housing, taxation and efficiency

Gov. Abbott said he wants to give residents power to decide whether a data center can come to their community

Democrats have broadly staked out a clear position against data centers, while Republicans play defense as public opinion turns against the facilities

Craig Thompson argues that on top of powered land and capital, developers need public support, as community opposition is creating delays and uncertainty.

Infrakey said it is prepared to submit necessary water and energy information to state regulators by October 12, 2026 filing deadline.

AI is driving demand for new data centers requiring enormous amounts of electricity

Data center opposition is a potent political issue in Texas governor and Senate races for 2026 midterm elections

Abbott says data centers must pay their own way, protect the grid and water, and complete audits

U.S. Rep. Henry Cuellar proposed Ratepayer Protection Bill of Rights on September 22, 2026 to prevent data centers from shifting utility costs onto residents and agricultural producers

Abbott said projects should bear their electrical infrastructure costs, lower household electricity bills and avoid drawing on water needed by local communities

Abbott reversed his prior support for data center development in Texas, citing local community concerns.

Abbott said he would aim to phase out any economic incentives for data center projects and will work with the Texas Legislature to make that happen

Gina Hinojosa, Democratic gubernatorial candidate, said the Governor could change his mind on the pause after November 4

Abbott wants state lawmakers to eliminate tax incentives for data centers when they return to Austin next year

Abbott says audits aim to ensure data centers do not make the power grid less reliable and must cover all their own electrical infrastructure costs

Data centers have become a central issue in the governor's reelection race

Governor Abbott stated he will work with the Legislature to eliminate financial incentives for data centers

Ten months ago Abbott said he wanted Texas to be the epicenter of AI development during a Google data center investment event.

Greg Abbott, Texas Governor, said the necessity to rein in the data center industry that was completely out of control

Data centers must not use water needed by local communities, must report electricity and water usage, and must abide by setback requirements

Position note: Earlier statements in November 2025 promoted Texas as the national hub for AI data center buildouts, before August and September 2026 directives halted new TCEQ permits and required ERCOT grid audits.

Abbott plans to work with lawmakers to eliminate tax breaks for data centers

Meghan E. Griffiths, Co Chair of Jackson Walker's Digital Infrastructure & Data Centers practice, participated in a panel session at Data Center World Power Conference 2026 (September 21-23) discussing how ERCOT's unique market structure shapes power procurement strategies for Texas data centers.

Governor Abbott directed that projects failing to meet audit requirements could be denied grid access entirely

Data center projects must cover all electrical infrastructure costs, result in lower residential electrical bills, and complete the ERCOT audit

Data centers must cover their electrical infrastructure costs to receive permits

Three month Google sponsored battery storage pilot project in Texas

Candidate Gina Hinojosa called for a data center moratorium, union job requirements, elimination of NDAs, proof that households will not pay more for electricity or water, end to tax subsidies, and enforcement of water supply protection

Fewer than 10% of data center companies responded to a state request for information needed to forecast future electricity demand, according to Governor Abbott

Mayor Chris Nunneley stated the city is not actively pursuing any data center deals.

State Sen. Tan Parker plans to introduce data center legislation at the Texas Legislature starting Jan. 12, 2027

Parker's legislation will establish public discussion and transparency requirements for data centers

A 2016 SEC lawsuit accused Paxton and William Mapp of concealing stock compensation from investors and allowing Paxton to operate as an unregistered broker

Bee County Judge George P. Morrill III stated that while Texas is a private property rights state, a clearer legislative framework is needed to navigate the balance between property rights and broader economic and environmental impacts on rural communities

President Trump warned that communities blocking data center facilities would end up being backwards and poor

PFAS are used in two phase immersion cooling systems where servers are immersed in PFAS fluid with low boiling point to draw heat away.

Daikin plans to more than triple its fluoropolymer production capacity in response to rapidly growing semiconductor market, building new factory to start manufacturing PFAS next year.

Bethanie Carney Almroth, UN Special Rapporteur on toxics and human rights, emphasized PFAS issue is a matter of global environmental justice.

The demand for skilled labor in data center construction is creating competition for workers needed in homebuilding and other construction industries.

International Chemical Secretariat report finds expansion of top 10 PFAS producers is driven by AI and data center infrastructure, semiconductor manufacturing, and lithium ion battery materials.

Gov. Abbott issued a directive to the Texas Water Development Board to penalize data centers that don't comply with state water laws

Texas governor wants data centers penalized for not responding to water inquiry

Cushman & Wakefield ranked Dallas No. 1 global data center location

Cushman & Wakefield analyzed over 100 global markets evaluating power infrastructure, politics, regulatory conditions and ability to hold data

Meta said on August 10 that it would pay the full costs associated with its data centers' energy and water use rather than shift them to consumers

State Rep. Helen Kerwin urged Abbott in March to consider pausing large scale data center development in rural communities

Dallas surpassed Virginia which had held No. 1 position for over 25 years

Data centers appear to have committed civil and criminal violations by failing to provide water usage information

TWDB is in charge of developing a state water plan to meet the needs of Texas

Gov. Greg Abbott previously promised to make Texas a hub for data center developments

Governor Abbott directs TWDB to penalize major water users, including data centers, for failure to comply with water use reporting requirements.

Hinojosa and other Democrats are calling for an immediate moratorium on new data centers and an end to tax handouts for developers

Digital Realty welcomed the Texas framework on August 7

Rick Jackson is invested in a data center in Texas that has received backlash from residents

Cameron County Judge Eddie Treviño, Jr. states county is obligated by state law to issue permit once developer meets all requirements but must monitor compliance

State Senator Adam Hinojosa states data centers should strengthen communities and secure their own power and water resources

Kate Franko, Head of Public Affairs at Fluidstack, states company pays full local property taxes and builds to Governor's standards

EPN report outlines 30 federal actions increasing pollution related health risks including fast tracking data center permitting.

Environmental Protection Network released a report on hazards from data center expansion.

Cameron County Commissioner David A. Garza endorses Fluidstack's commitment to pay own energy and infrastructure costs and maintain low water usage

A planned data center in Westlake was discussed at the town hall

Fluidstack will pay full local property taxes without requesting tax abatements or county incentives

Fluidstack will pay for its own energy and infrastructure

Krause said the state could develop a legislative agenda for data centers for the 2027 session

Gov. Greg Abbott ordered state regulators to conduct a comprehensive audit of all data centers advancing through the interconnection process before any additional projects are approved

Data center backlash is threatening to shape 2026 midterm elections

Hector Garza, Democratic challenger for Texas House District 5, advocates for a moratorium on data center construction

Karl Rove claims a data center will make a school district one of the richest in Texas

Cole Hefner, incumbent Republican state representative for Texas House District 5, supports data center regulations to protect water but not a moratorium

Gov. Greg Abbott has changed position on data centers and taken legislative recommendations and steps

Skilled technician shortages are a major challenge for fiber installation, with insufficient workers to perform the work needed

MD Anderson Cancer Center delayed two projects planned for next five years due to data center boom impacts

Municipal permitting for fiber installation is increasingly restrictive, involving 15 different departments for approvals that should be straightforward

Public backlash to AI data centers is growing

Data centers have tied up large swaths of steel and concrete supply

Data center development in Texas is straining demand for construction materials and equipment

Datacloud USA conference speakers identified material shortages, labor shortages, and permitting delays as obstacles to data center fiber buildout beyond community opposition

There is insufficient fiber supply despite advances in transmission capacity, with hyperscalers building two or three smaller data centers in a 30-35 mile circumference instead of one in major metros

Charles Perry says data center design is water efficient and concerns about data center water use are overblown

Fiber providers are sourcing materials from international vendors and countries they might not have used previously due to domestic shortages

The National Republican Senatorial Committee warned that data centers are the anchor hanging around Husted's neck

Kate Csillagi, communications director for the Save Our Springs Alliance, says state leaders are not doing enough to protect the state and its citizens

Republican politicians shifted from praising data centers as bringing benefits to talking about their downsides starting around February 2026

President Trump issued an executive order trying to make it easier to build data centers but also promoted a bill to protect people from having data center power bill increases

Democratic candidate for Texas Agriculture Commissioner raising data center regulation as campaign issue