The Texas data-center boom didn’t happen overnight. This is how we got here.
Texas is facing the consequences of its data center boom, spurred by AI, after more than a decade of offering tax breaks and incentives. Lawmakers and local officials are now grappling with the need for regulations, as residents in rural communities push back against the industry's high energy and water consumption. The state has seen significant growth in data centers, with many more planned.
Texas initially welcomed data center developers with tax breaks and incentives for over a decade. The industry experienced an explosive boom in the state with the rise of artificial intelligence.
However, this rapid growth has led to consequences, prompting lawmakers and local officials to consider regulations. Residents in rural Texas communities are actively opposing these data centers due to concerns over their significant energy and water demands.
According to the Houston Chronicle's data center tracker, Texas currently hosts at least 335 operational data centers, with an additional 225 projects in the planning stages. The state is now transitioning from a period of open embrace to one of regulatory adjustment.