Daily Digest — April 10, 2026
Texas House Committee Launches Multi-Hearing Scrutiny of Data Center Boom
The Texas House Committee on State Affairs held a major hearing examining the state's rapid data center expansion, drawing testimony from ERCOT, tech companies, and energy leaders. According to KCENNews, the state has more than 300 existing facilities with hundreds more planned, and ERCOT told lawmakers its current approval process is not equipped to handle the volume of applications.
ERCOT CEO Pablo Vegas testified that nearly 90% of new project requests are for data center construction, according to FOX 4 Dallas-Fort Worth. In response, ERCOT plans to stop approving individual data center projects and will launch a "batch" approval program this summer, processing a set of projects annually. As reported by NBC 5 Dallas-Fort Worth, some data center companies — including a leader from the Stargate project near Abilene — view this batch approach as a de facto moratorium on development.
Industry representatives emphasized economic contributions, with KVUE reporting that industry leaders cited $65.8 billion in GDP contributions, $4.5 billion in state and local tax revenue in 2024, and support for over 428,000 jobs. Data center executives defended water usage — one developer asserted their average facility uses less water annually than five houses — and suggested data centers can act as a "reverse battery" by releasing backup generation capacity during grid emergencies.
Key areas of debate include:
- **Grid reliability and cost pass-through:** Lawmakers sought assurances that residents would not face increased electricity costs
- **Water consumption:** Representative Senfronia Thompson raised concerns about water availability for constituents
- **Tax incentives:** Some lawmakers questioned the continuation of sales tax exemptions Texas offers alongside 36 other states, with some expressing support for limiting or eliminating them
- **National security:** Multiple witnesses warned the U.S. cannot afford to fall behind China in AI computing capacity
- **Community impacts:** The committee chairman cited concerns about thousands of construction workers flooding rural towns, straining water lines, sewage, and housing
Google, which has a $3 billion investment plan in Texas, acknowledged its responsibility for local community impacts. The committee plans additional hearings in April and May, with new regulatory rules for project approvals expected by June 1. A Senate committee is expected to hold a separate hearing this summer. The next House hearing will include public testimony.
Texas lawmakers grapple with data center boom, grid strain, and national security concerns
KCENNews
Texas lawmakers discuss impact of data center growth in hearing
KVUE
Texas House panel begins to scrutinize data centers
NBC 5 Dallas-Fort Worth
Texas energy leaders answer questions on data centers
FOX 4 Dallas-Fort Worth
SALDO Amendments Proposed for Data Center Alternative Energy Sources
According to Tri-State Alert, proposed amendments to a Subdivision and Land Development Ordinance (SALDO) would address the incorporation of alternative energy sources for a data center project. Specific details about the location and entities involved were not available in the reporting.
Festus, Missouri Residents File 12-Count Lawsuit to Block $6 Billion Data Center
Four property owners and the advocacy group Wake Up JeffCo have filed a 12-count, 54-page lawsuit against the City of Festus, Missouri, and developer CRG (a division of Clayco) to halt a proposed $6 billion data center project near Highway 67 and Route CC in Jefferson County. According to KMOV St. Louis, the lawsuit seeks to invalidate the city's rezoning of the project land, restore it to its prior classification, and void the development agreement approved by the city council.
The suit alleges violations of city codes and the state's Sunshine Law during the approval process, as reported by KSDK. Attorney Steven Jeffrey, representing the plaintiffs, described it as the first lawsuit in the St. Louis area challenging a government's decision to approve such a large data center project. The legal action follows a municipal election in which Festus voters unseated four city council members, three of whom had voted to approve the data center.
The interim city administrator maintained that all legal requirements were followed for enacting data center regulations, annexing property, rezoning, and approving the development agreement. An attorney for CRG stated the company does not intend to let the litigation derail the project's progress. The project still requires further city approvals, including a site plan and permits.
Saline Township Tables Planning Proposals, Schedules Moratorium Hearing for May 5
The Saline Township Board's April 8 meeting drew intense public opposition to the ongoing Related Digital data center construction, according to The Sun Times News. Residents raised concerns about lighting, traffic, 24-hour construction, runoff, cybersecurity, and the general risks of large-scale data center development. Some attendees traveled from other parts of Michigan to support local opposition efforts.
The board tabled proposals for master plan update assistance and zoning ordinance consolidation in response to public objections. Trustee Tom Hammond announced that the Saline Township Planning Commission has scheduled a public hearing for May 5 to discuss a potential moratorium on data centers. The commission also recommended the board consider new legal and planning consultants, particularly given ongoing litigation.
Separately, MLive.com reports that the Michigan State Police have increased their presence in Saline due to ongoing data center work. The reason for the increased police activity was not specified.
Anti-Data Center Rallies Planned Across Michigan, Linked to Utility Donation Ballot Initiative
Anti-data center rallies are scheduled this weekend in Detroit, Ann Arbor, and other Michigan cities, according to Planet Detroit. Organizers are connecting opposition to the Michiganders for Money Out of Politics (MMOP) ballot initiative, which seeks to prohibit political donations from monopoly utilities like DTE Energy and Consumers Energy.
State Rep. James DeSana (R-Monroe County) and other speakers have highlighted concerns about data centers occupying agricultural land, consuming electricity and water, and generating noise. The Michigan Legislature is considering measures including a data center moratorium and repeal of tax breaks for these facilities. Augusta Township voters are preparing to decide on rezoning land for a $1-billion data center project in August.
DTE Energy spokesperson Ryan Lowry stated the company complies with all applicable laws regarding political contributions and will include protections in service agreements to ensure data centers cover their costs. Consumers Energy spokesperson Brian Wheeler defended political activity as free speech and argued that significant load growth from data centers would lead to downward pressure on rates.
