Texas Data Center Fight Grows Over Power, Water and Rapid Expansion

Texas communities are increasingly pushing back against data center growth, prompting state lawmakers to debate how to properly regulate the rapidly expanding industry. The House State Affairs Committee held a hearing to examine the future of data center projects in Texas, where officials and citizens raised concerns about their impact on electricity, water supplies, infrastructure, and surrounding communities. Advocates called for a clearer picture of these impacts and responsible development, while others, like a Childress County judge, highlighted the economic benefits data centers have brought, including financial support for schools and local businesses.

The hearing follows Governor Greg Abbott's directive for an audit of up to 300 proposed data center projects statewide. Abbott ordered ERCOT and the Public Utility Commission to pause projects until each data center can prove they are covering their own costs, detail energy consumption, and outline efforts to reduce water impacts. The goal is to gather data to inform potential legislation addressing policy priorities.

Outside the hearing, anti-data center coalitions, including November challenger Gina Hinojosa, called for a moratorium, greater transparency, and stronger regulations. Many members traveled across the state, expressing feelings of being left in the dark and questioning the necessity and placement of data centers. They warn of severe consequences if unaddressed, citing concerns about power generation, pollution, heat islands, and increased local rent, suggesting the fight is just beginning.