Texas Republicans second guess data center boom as environmental concerns persist
Residents in Red Oak, Texas, are actively opposing the proliferation of data centers, with one couple cutting "NO DATA CENTER" into their lawn. This local concern mirrors growing skepticism from state leaders, as Governor Greg Abbott has proposed sweeping policy changes requiring data centers to self-power, avoid rural areas, and address outdated tax incentives. Environmental worries about increased energy and water consumption, particularly from gas-fired power plants dedicated to data centers, are also prominent.
Residents in Red Oak, Texas, are expressing strong opposition to the rapid expansion of data centers in their community, exemplified by a local couple who mowed "NO DATA CENTER" into their property. The town, with fewer than 15,000 residents, has seen six large data center campuses built or approved, including facilities by DataBank and Compass Datacenters, sparking concerns about traffic, infrastructure strain, and noise and light pollution.
This local sentiment is echoed by Texas state leaders, with Governor Greg Abbott calling for significant policy reforms by 2027. His recommendations include mandating that data centers provide their own power generation, bear their own infrastructure costs, reuse their own water, and halt development in rural areas. Abbott also highlighted the need to re-evaluate state sales tax exemptions for data centers, which currently cost the state over $1 billion annually.
Environmental concerns are central to the debate, particularly regarding the industry's increasing reliance on gas power plants to fuel facilities. A report by the Environmental Integrity Project identified 32 such plants in Texas, with more planned for counties like Hood, Hill, and Anderson. These plants are projected to generate substantial greenhouse gases and particulate matter, raising alarm among environmental groups like Panhandle 1, which is actively fighting a data center in West Texas.