State of Texas: Data center boom faces growing scrutiny
Texas Governor Greg Abbott has ordered a comprehensive audit of data center projects, focusing on water use, power demand, and tax incentives. This move follows increasing public and political pressure for greater oversight and the proposed implementation of a moratorium on new data center developments across the state, with specific concerns raised in Bastrop County.
Earlier this month, Governor Greg Abbott directed Texas energy regulators to conduct a comprehensive audit of data center projects seeking to connect to the state's power grid. The audit, which is expected to take several months, will determine if developments comply with state requirements, review water usage and conservation plans, and scrutinize financial details such as tax incentives and public funding programs. No projects are to move forward until officials complete this assessment.
The Governor's directive comes amidst growing public and political pressure for increased oversight of data centers. Dave Scott, a Bastrop County resident, expressed concerns about a proposed 1,450-acre data center project by Pacifico Energy near Earl Callahan Road, citing worries about property values and local impact. Republican Agriculture Commissioner Sid Miller, speaking at a town hall in Bastrop, advocated for a one-year moratorium on data centers to establish better guardrails, highlighting potential strain on water resources, the electric grid, and farmland loss.
The statewide debate also involves tax breaks worth billions for data center companies, which the industry defends as essential for critical digital infrastructure and economic benefits. Governor Abbott's office has stated that data centers must not prioritize over Texas families and has directed the Public Utilities Commission to require facilities to pay for their own infrastructure, bring their own power, reuse water, and contribute to lowering residential electric bills. Democratic State Representative Gina Hahosa has also called for an emergency executive order for a moratorium on data centers.
Several tech companies have voiced support for the governor's audit. Meta has agreed to conditions for its data center project in northeast El Paso, and Google stated its compliance following a $40 billion investment in the state. Edge Connects is also mentioned in connection with a 1,400-acre development along FM 535 near Austin. The video concludes by noting ongoing landowner concerns over high-voltage power lines and calls for direct intervention from Governor Abbott.