Texas Local Governments Control Data Center Development Despite State Audit and Political Views
Texas Governor Greg Abbott has issued an order requiring data centers seeking grid connection to disclose detailed information, including electricity and water usage, to the state's utility regulator and grid operator. Despite this statewide action, local governments across Texas, such as Denton, Irving, and Dallas, are actively making decisions on data center development through zoning changes, permits, and considering moratoriums. The article emphasizes that local land-use decisions remain the primary determinant of data center construction.
Texas Governor Greg Abbott recently signed an order requiring data centers seeking connection to the state's power grid, managed by ERCOT, to undergo an audit. This audit mandates disclosure of public subsidies, electricity and water demand, cooling systems, and local impacts. The Governor's spokesman indicated that fewer than 10% of data centers had previously provided such information, despite ERCOT facing connection requests for 474 gigawatts, with 90% attributed to data centers.
The Governor's action follows a situation in Georgia, where a data center developer in Fayette County used over 29 million gallons of unbilled water, leading to local water pressure complaints. While former President Donald Trump has praised data centers as economically vital for Texas, the article contends his remarks hold less practical sway than local governmental decisions. This is evident in ongoing land-use battles in North Texas.
For instance, the Denton City Council is exploring development code changes and a possible moratorium on data centers. Irving City Council, after its Planning and Zoning Commission recommended approval and despite staff concerns and resident objections, unanimously approved a three-building data center campus. Additionally, five Dallas City Council members have formally requested a hearing on data center regulations. The article concludes that, despite statewide audits or political endorsements, the ultimate decision on data center construction rests with local councils and their adherence to established processes.