Texas lawmakers question data center tax breaks as protesters demand regulation
Texas lawmakers are reviewing the state's data center tax incentives, which are projected to reach $3.3 billion by 2028. Simultaneously, protesters gathered at the Texas Capitol to demand stricter regulations on data centers due to concerns over water use, energy demand, and community impact. Grassroots organizations and officials, including Texas Ag Commissioner Sid Miller, are calling for the governor to convene a special session to address the rapid growth of data centers.
Protesters converged on the Texas Capitol, urging lawmakers to control the rapid expansion of data centers across the state. They voiced concerns over the industry's environmental footprint, specifically citing water usage and energy demands, and its overall impact on communities and infrastructure.
Inside the Capitol, the Senate Finance Committee questioned the state's data center tax incentives, which have significantly increased from $14 million in 2014 to a projected $3.3 billion by 2028. Industry representatives defended these exemptions. During the discussion, a comparison was drawn to Colorado, which reportedly lacks state sales tax exemptions for data centers, leading to fewer facilities there. The example of Covington, Georgia, where a data center reportedly led to the elimination of residential property taxes, was also cited.
Grassroots organizations, alongside Texas Agriculture Commissioner Sid Miller, are closely monitoring the legislative proceedings. They are actively calling on the Governor to convene a special session to address the escalating data center issues.