Texas county reacts to Greg Abbott's proposed regulations for data centers
Texas Gov. Greg Abbott has proposed new regulations for data centers, including water conservation and reporting requirements, ahead of the 2027 legislative session, despite his previous support for the industry. This move comes as residents and local officials, particularly in Hays County, push for tighter controls on data centers due to concerns over water and power consumption. Hays County Judge Ruben Becerra, who previously initiated a 180-day pause for assessment, believes the timing of the governor's letter is politically motivated.
Texas Governor Greg Abbott has released a letter outlining recommended regulations for data centers, making them a priority for the 2027 legislative session. This development follows strong pushback from Texas residents and local governments, like Hays County, who cite concerns over data centers' significant water and power demands.
While Gov. Abbott previously championed Texas as an AI development hub, his aide claims the new regulations, which include mandates for closed-loop cooling systems, annual reporting of utility usage to the Public Utility Commission of Texas, and repealing sales tax exemptions, do not signal a shift in his stance. However, Hays County Judge Ruben Becerra, a vocal advocate for stricter local controls on high-volume industrial water users, suggests the upcoming November election influenced the timing of the governor's announcement. Judge Becerra expressed during a Commissioners Court meeting in early June that the proposed regulations do not go far enough.
Hays County has its own history of attempting to regulate such industries; Judge Becerra proposed tighter regulations in February and implemented a 180-day pause for assessment, though he clarified it was not a formal moratorium. A recent resolution to address high-volume industrial water users was tabled by the Commissioners Court and is set to be revisited later in June. The article notes that other counties are hesitant to enact moratoriums after a data center developer filed a $100 million lawsuit against Hill County following the passage of a moratorium there. Judge Becerra is calling for state officials to grant more regulatory authority to county leaders.