Texans rally at Capitol, push for special session on data center oversight

News Clip2:23KLTV 7·Austin, Travis County, TX·7/28/2026

Texans rallied at the State Capitol in Austin to advocate for stricter state government oversight of data centers. A legislative committee also held a public hearing on data center tax incentives, raising concerns about environmental impacts, particularly water usage during drought conditions. Citizens are pushing for a special legislative session to address these issues and establish new regulations.

governmentoppositionenvironmentalwaterzoning
Gov: Governor of Texas, Texas Senate Finance Committee, Texas State Legislature, Texas Comptroller's Office

Texans gathered at the State Capitol in Austin, chanting "Special Session Now" to voice their concerns regarding data center development across the state. Among them was Stacey Farmer from Henderson County, who highlighted how a proposed data center near her home was withdrawn last week, but emphasized that the fight for stronger oversight is "not over yet" due to the exponential growth of data centers.

Simultaneously, the Senate Finance Committee held a public hearing to discuss the state

’s tax incentive program for data centers. Lawmakers questioned the adequacy of vetting processes for approving millions in tax breaks, with one lawmaker asking whether the Comptroller's Office merely "checks, trusts them, check, go down the list, check, and here you go."

Concerns were also raised about the environmental impact of data centers, particularly their water usage, as Texas faces worsening drought conditions. Opponents argued that data centers are being built "without any regulation" in areas already experiencing water shortages, impacting farmers, ranchers, and families. A lawmaker questioned how such developments should be managed, with an official responding that it is "something for you and your colleagues in the legislature to deliberate this next session if you want to establish some kind of permitting process." Rural Texas advocate Roger Browning presented stacks of signed petitions during public comments, underscoring widespread public demand for action.