Data centers and the Texas gubernatorial race
The Texas gubernatorial race has brought data centers' energy and water consumption into the political spotlight. Both incumbent Governor Greg Abbott and challenger Beto O'Rourke have proposed stricter regulations and ending tax breaks, though they differ on immediate actions like a moratorium.
Data centers have become a significant issue in the Texas gubernatorial race, with both Republican incumbent Greg Abbott and Democratic challenger Beto O'Rourke expressing concerns over their energy and water usage. The issue gained prominence after a summer where residents, particularly in rural areas like Hood County, voiced worries about data centers being built near their homes and the impact on their quality of life.
Beto O'Rourke has emphasized these local concerns, advocating for legislation that would require data centers to create American union jobs, forgo non-disclosure agreements, and guarantee no increased costs for residential electricity or water. He also proposes eliminating tax subsidies for data center corporations and calls for an immediate moratorium on data center development until the Legislature can pass new policies.
Governor Abbott, who previously supported a $40 billion data center investment in Texas alongside Google executives, shifted his stance over the summer. He has since called for stricter regulations, ordering the Public Utility Commission of Texas to audit all data center projects. Abbott insists that data centers must provide their own power, reuse their own water, and not raise electricity costs for residents or small businesses. He has also proposed restricting data center construction in rural neighborhoods and eliminating tax breaks.
While both candidates share similar long-term proposals regarding data centers, their immediate approaches differ. O'Rourke supports a moratorium, whereas Abbott defends his audit-based strategy, stating that data centers meeting strict conditions should be allowed to build.