Central Texas officials push for statewide pause on new data center development
Central Texas officials, led by State Rep. Vikki Goodwin, are advocating for a statewide moratorium on new data center developments in Texas. This push is driven by concerns over increased electricity demand, higher power costs, and water usage, with local examples from Hayes County and San Marcos already enacting local pauses or bans. Governor Greg Abbott has also expressed support for limiting development, while the data center industry warns a moratorium could harm the state's economy.
Central Texas officials, including State Representative Vikki Goodwin, convened a news conference to advocate for a statewide moratorium on new data center approvals in Texas. Citing concerns over increased electricity demand, rising power costs, and significant water usage, Goodwin and other local leaders called for greater transparency and the implementation of safeguards at the state level. They emphasized the need for the legislature to address these issues, potentially through a special session, to protect communities from the adverse impacts of unchecked data center growth.
The push for a statewide pause follows actions already taken by some local jurisdictions. Hayes County leaders voted to implement a moratorium on new data center projects until the end of the year to review their options. Similarly, San Marcos city leaders enacted a ban on new data centers across all zoning districts. State leaders hope to replicate these local protections on a broader scale.
Governor Greg Abbott has also weighed in on the issue, previously calling for limitations on data center development, specifically prohibiting AI data centers in rural Texas neighborhoods and eliminating associated tax breaks. State leaders from both major parties have urged the Governor to call a special legislative session to consider new regulations. However, the data center industry, represented by Dan Diorio, Executive Vice President of the Data Center Coalition, has cautioned against a moratorium. Diorio stated that such a measure would send negative signals to data center companies and other major businesses, potentially discouraging investment and undermining Texas's pro-business economic posture.
The Governor's press secretary responded to KVUE, asserting that Governor Abbott's directives to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) are intended to protect Texans. The debate highlights a growing tension between economic development and environmental and community concerns related to the rapid expansion of the data center industry in Texas.