League City moves to regulate data center development
League City, Texas, is considering a new ordinance to require special-use permits for data centers, which would allow the city to approve or deny their construction. This move is driven by concerns over data centers' high electricity and water consumption and potential strain on the power grid. Public hearings and a city council vote are scheduled for October.
League City, Texas, is moving to establish an ordinance requiring data centers to obtain a special-use permit, giving the city council the authority to approve or deny their development. Mayor Nick Long stated that without such regulations, data centers could be built "by right" on commercial land. This initiative responds to national trends of increasing data center construction and growing concerns about their substantial electricity and water consumption, which local communities fear could strain electrical grids and raise utility rates.
The proposed ordinance is slated for review by the planning and zoning commission on October 22 and the city council on October 27. If enacted, it would allow the city to impose conditions on data center projects, including location, footprint, noise mitigation, and resource usage, though agreeing to these conditions would not guarantee approval. Governor Greg Abbott has recently heightened state scrutiny of the data center industry, directing the Texas Commission on Environmental Quality to pause permits for data centers until the Electric Reliability Council of Texas completes an audit of proposed projects.
League City officials believe there is interest from data center developers in the area, prompting the proactive regulatory effort, and have indicated that tax breaks would likely not be offered. The only existing data center in Galveston County, the Dataprana La Marque Data Center, primarily focuses on cryptocurrency mining.