Are Texas lawmakers eyeing more data center regulations?
Texas lawmakers are signaling bipartisan support for new data center guardrails, including requirements to recycle water or generate their own energy. Lawmakers are also questioning whether existing tax incentives are too generous and whether large data center power demands could raise costs for other Texans.
KXAN reporters Arezow Doost and Dylan McKim examined growing concerns about data centers in Texas and the possibility of new regulations. During legislative hearings, lawmakers from both parties have expressed support for safeguards addressing water consumption, cooling technology and the impact of large energy users on household electricity costs.
Joan Huffman, chair of the Texas Senate Appropriations Committee, has said the state’s data center tax incentive may be too large. The issue is expected to receive further attention when lawmakers return to session in January, although the specific proposals and their status will depend partly on the outcome of upcoming elections.