State of Texas: Data centers face political headwinds, poll shows

News Clip6:17KXAN·TX·8/29/2026

Austin City Council approved a resolution directing the city manager to prepare land code updates and zoning districts for data centers, potentially leading to new regulations on power, water, landscaping, and noise. This follows San Marcos's ban on data centers due to water and energy concerns, which a state senator believes conflicts with state law. New polling indicates broad opposition to data centers among Texas voters.

zoningoppositionenvironmentalgovernmentlegalelectricitywatermoratorium
Gov: Austin City Council, City of San Marcos, Republican state senator Paul Bettincourt, Texas Politics Project at the University of Texas, Governor Abbott

The Austin City Council has taken a preliminary step towards regulating data centers by approving a resolution. This resolution directs the city manager to develop land code updates and establish specific zoning districts for data center facilities, aiming to implement stricter standards for power and water usage, landscaping, and noise. The move comes two months after the city of San Marcos became the first in Texas to ban data centers, citing significant concerns over their water and energy demands. However, the San Marcos ban may face legal challenges, as Republican State Senator Paul Bettencourt has expressed his belief that the ordinance conflicts with state law.

The push for stricter regulations and bans is supported by recent polling conducted by the Texas Politics Project at the University of Texas. Jim Henson, the project's director, discussed the poll results, which indicate that Texans oppose having a data center in their community by nearly a 2-to-1 margin. While most Texans acknowledge potential positive impacts on technology access, their primary concerns revolve around more immediate issues like water access, grid reliability, and local environmental impact. Opposition is strongest among Democrats and rural Texans, but also notably prevalent in suburban areas.

The polling suggests that data center development will be a significant issue in the upcoming November elections. Henson noted that the current political climate favors those critical of data centers, potentially giving Democrats an advantage. Governor Abbott, previously a strong supporter of data center growth, has reportedly adjusted his message, moving from the 'fast lane' to the 'slow lane' on the issue, indicating that incumbents must now approach data center policies with caution due to widespread voter concern.