Texas Governor Proposes Data Center Regulatory Reforms
Texas Governor Greg Abbott has proposed a regulatory crackdown on AI-powering data centers in the state. The recommended reforms include repealing state tax exemptions and requiring annual reporting on data centers' water and electricity usage, aiming to protect Texans from rising utility costs and depleting water reservoirs.
Texas Governor Greg Abbott has advocated for a regulatory crackdown on data centers, a shift from his earlier promotion of Texas as a hub for artificial intelligence development. The Republican governor's recommendations include repealing state tax exemptions currently benefiting data centers and implementing requirements for annual reporting on their water and electricity consumption.
These proposed measures are aimed at addressing concerns over rising utility costs for Texas residents and the depletion of the state's water reservoirs. Additionally, Governor Abbott has instructed the state's Public Utility Commission to initiate actions by the end of July to reduce residential transmission costs, following a year that saw Texas lead the U.S. in utility shutoffs.