Gov. Greg Abbott calls for ban on data center development in rural Texas neighborhoods
Texas Governor Greg Abbott called for a ban on new AI data center development in rural Texas neighborhoods, expanding on a previous regulatory framework that included requirements for self-funded infrastructure, power generation, and water reuse. This move comes amidst increasing opposition from rural communities and local government actions, such as moratoriums and outright bans, despite a previous $100 million lawsuit against Hill County for considering a moratorium.
Texas Governor Greg Abbott has called for a ban on new artificial intelligence data center development in rural parts of the state, further intensifying his stance on regulating the industry. Speaking at a campaign event in Bullard, Abbott stated, "We must prohibit them from building AI data centers in rural Texas neighborhoods," linking the issue to "East Texas values" and property tax cuts. This proposal goes beyond a comprehensive regulatory framework he unveiled earlier in the month, which included demands for data centers to generate their own power, pay for infrastructure, reuse water, implement setbacks, and eliminate tax breaks.
Abbott's campaign spokesperson, Eduardo Leal, confirmed that the Governor's recent statements align with his June 10th letter, which outlined intentions to work with lawmakers to mitigate adverse impacts on local communities. While Abbott had previously been supportive of data center investments, even touting Texas as an "epicenter of AI development" after Google's $40 billion investment announcement, his position has shifted amid rising opposition. Rural communities and activists are increasingly concerned about water availability, air quality, and potential hikes in power bills, with public polling indicating widespread unpopularity for data centers, especially in rural areas.
Local governments have begun to act, with some counties considering moratoriums, though Hill County notably reversed its moratorium plans after facing a $100 million lawsuit from a developer. Cities, possessing broader zoning authority, are enacting new regulations, with San Marcos becoming the first to outright ban data centers. A Texas lawmaker has already expressed intent to challenge the San Marcos ban, highlighting the contentious nature of data center development across the state. The Data Center Coalition, an industry trade group, maintains that its members provide essential services, offer significant property tax benefits, and are advancing technologies to reduce water usage.