TribCast: Texas’ looming data center fight

TribCast: Texas’ looming data center fight

News ClipThe Texas Tribune·TX·4/28/2026

Texas is poised to become a national leader in data center development, attracting projects with favorable conditions and significant tax breaks. State lawmakers are preparing for a legislative session focused on regulating and taxing this expanding industry, seeking lessons from Virginia's experience with similar growth.

governmentelectricityenvironmental
Gov: Texas lawmakers, The Texas Legislature, Office of the Attorney General
Texas is rapidly becoming a leading state for data center development, attracting numerous projects with its abundant land, limited regulations, and substantial tax incentives, amounting to an estimated $3.2 billion in sales tax revenue over the next two years. This growth is setting the stage for a significant legislative debate as Texas lawmakers prepare to tackle the complex issues surrounding the industry's regulation and taxation in the upcoming session. To inform their approach, they are drawing insights from Virginia, another state experiencing a boom in data center construction. The TribCast discussed these developments, featuring Charles Paullin, a Virginia-based reporter for Inside Climate News, and Paul Cobler, The Texas Tribune's industry and economy reporter.