Texas Republicans disagree over prohibiting data centers in rural neighborhoods
Texas Republicans are divided on the issue of prohibiting AI data centers in rural areas. While some local governments like San Marcos have banned data centers and Fort Worth is considering a moratorium, Governor Abbott has directed state commissions to ensure data centers do not negatively impact electricity costs or water resources. Lawmakers are expected to debate state-level regulations and tax incentives in the upcoming session.
Texas Republicans are currently in disagreement over the prohibition of AI data centers in rural parts of the state. State Representative Shelley Luther and Texas Railroad Commissioner Wayne Christian hold opposing views on the matter, which is expected to be a major debate when lawmakers reconvene in Austin next January.
Local governments across Texas are already taking action. San Marcos city leaders voted to prohibit data centers, while Hood County leaders approved the Comanche Circle project near Tolar. In Fort Worth, five city council members announced their intention to propose a temporary moratorium on data center development, despite the Zoning Commission rejecting proposed restrictions for future facilities.
Representative Luther, whose farm is near Sherman in Grayson County, advocates for protecting rural landscapes and supports Governor Greg Abbott's stance on prohibiting AI data centers in rural Texas neighborhoods, emphasizing the need to preserve land. Conversely, Commissioner Christian opposes a blanket ban, arguing that the billions of dollars from data centers could revitalize decaying rural Texas.
Both Republican leaders agree that AI data centers can be regulated. Luther suggested adjusting private property rights to give counties more zoning authority, while Christian called for a specific "Texas plan" for how such facilities should operate. Governor Abbott has directed the Public Utilities Commission of Texas and ERCOT to ensure data centers reduce costs for residential electricity customers and do not deplete water resources. Additionally, there is bipartisan interest in eliminating sales tax incentives for data center developers.