Data center development targets Texas farmland, sparks power clashes

Texas Commissioner of Agriculture Sid Miller has voiced significant concerns about the rapid expansion of data centers in Texas, particularly their impact on the state's prime farmland, water, and electricity resources. Miller explained that data centers often target highly productive, flat farmland due to existing infrastructure like water, electricity, and roads, leading to permanent conversion of land that cannot be recovered for agriculture.

Miller has proposed "agriculture freedom zones" to direct data center, solar, and wind farm development to less productive land. He highlighted that Texas has surpassed Virginia as the leading state for new data centers, with over 500 facilities, exceeding China's previous moratorium threshold. The Commissioner emphasized the strain on Texas's power grid, noting that current data center capacity, if fully connected, would demand five times the state's total capacity, potentially jeopardizing grid stability. He also addressed water scarcity, suggesting data centers utilize produced water from oil and gas production or deep earth water.

Miller has repeatedly called for a one-year moratorium on new hyperscale data centers in Texas to allow the state legislature to enact regulatory "guard rails." However, he stated that Governor Greg Abbott has refused this call, preventing legislative action. Miller alleged a conflict of interest, claiming the Governor has received millions from the data center industry. While President Trump has advocated for data centers due to job creation and tax revenue, Miller argued that Governor Abbott's administration has given away billions in tax incentives, effectively paying companies to locate in Texas rather than generating tax income. The Commissioner urged for a special legislative session to address these issues promptly, as current 'pauses' on data centers only restrict grid connection, not construction.