TXKToday.com: Texas Gov. Abbott spent a decade courting data centers. Now he wants to rein them in
Texas Governor Greg Abbott is shifting his stance on data centers, proposing to prohibit AI data centers in rural neighborhoods and eliminate state tax breaks. He has directed the Public Utility Commission and ERCOT to implement measures ensuring data centers cover their electricity infrastructure costs and is pushing for legislation requiring water-efficient technologies and usage reporting, especially as two projects in Bowie County face opposition.
Texas Governor Greg Abbott, who previously championed data center growth, is now advocating for significant restrictions on the industry. Speaking in Bullard, southeast of Tyler, Governor Abbott stated that AI data centers should be prohibited from rural Texas neighborhoods and emphasized that new data centers must fund their own projects, bring their own power, and reuse their own water. This marks a sharp reversal from his past policies, including signing legislation that expanded tax breaks for data centers.
The governor's new stance comes as two large data center projects are underway in Bowie County, one of which has already generated organized opposition. In a formal directive issued on June 10, Abbott ordered the Public Utility Commission of Texas (PUC) and ERCOT, the state
Furthermore, Abbott pledged to pursue legislation in the next session that would require data centers to adopt water-efficient cooling systems, report annual electricity and water usage to the PUC, and implement measures such as setbacks and noise reduction technology to address neighborhood concerns. He also reiterated his commitment to repealing sales tax exemptions and other incentives for data centers, arguing they must operate in ways that benefit residential electricity customers, conserve water, and respect local communities. His actions aim to reshape the future of data center development in Texas.