The politics of data centers
Governor Greg Abbott has shifted his stance on data centers in Texas, now advocating for tighter regulations and a ban on building in rural areas, a move his opponent, State Rep. Gina Hinojosa, is criticizing. This political shift comes amidst growing opposition from rural Texas communities and concerns about the state's power grid and water resources. Abbott's proposals include requiring data centers to use their own power and water, and repealing sales tax exemptions.
Texas Governor Greg Abbott has made a political course correction on data centers, now advocating for stricter regulations after previously supporting their development in the state. During a campaign event in Bullard, Texas, Abbott stated he is fighting to "push back against these AI data centers that are trying to build in our neighborhoods," a position that contrasts with his November support for Google's $40 billion AI infrastructure investment in Texas.
Abbott's Democratic opponent, State Rep. Gina Hinojosa, has criticized his policy shift, calling his new stance disingenuous. In June, Abbott sent a letter to the Public Utility Commission and Electric Reliability Council of Texas (ERCOT) proposing tighter regulations, including requirements for data centers to provide their own power, reuse water, and contribute to lowering electricity costs. He also suggested repealing sales tax exemptions for these projects. Hinojosa, conversely, pledged to freeze electricity bills and make corporations, including data centers, pay their fair share.
This political discourse reflects widespread opposition in rural Texas communities, with a poll by the Texas Politics Project revealing over 60% of rural residents oppose data center construction in their areas. Abbott has responded to this sentiment by proposing to "prohibit them from building AI data centers in rural Texas neighborhoods."