Greg Abbott calls for a ban on data center construction in rural Texas neighborhoods

Texas Governor Greg Abbott has made a significant policy shift, publicly calling for a prohibition on data center construction in rural areas of the state. This move comes after he previously championed Texas as a leading hub for AI development, and is a direct response to escalating public backlash regarding the energy and water demands of these facilities, particularly in heavily Republican rural communities.

Speaking at a campaign event in Bullard, a small East Texas town, Governor Abbott emphasized the need to block AI data centers from rural neighborhoods. He reiterated calls for lawmakers to eliminate tax breaks for these facilities and insisted that data centers should "bring their own money, bring their own power, reuse their own water, and do it in a way that reduces the cost of electricity for residents across our state."

The growing opposition to data centers is now seen as a potential political vulnerability for the GOP ahead of November's midterms. Recent polling from the University of Texas at Austin indicates that most Texans oppose data centers in their communities, with rural Texans showing 62% opposition. State Rep. Trent Ashby noted that data center relief has become a primary concern for constituents. Agriculture Commissioner Sid Miller had previously called for a statewide moratorium on data centers.

In related actions, Governor Abbott has ordered state regulators to prevent new data centers from passing on infrastructure costs to ratepayers and has urged lawmakers to repeal sales tax exemptions. This contrasts with his past actions, such as a November appearance with Google's CEO to promote Google's $40 billion investment in AI data centers in rural Texas counties.