Matagorda advocate Donna Howard urges senators to reconsider data center incentives

Donna Howard, a resident of Matagorda County and an organizer with Matagorda County Against Data Centers, testified before the Texas Senate Finance Committee on July 27, urging lawmakers to reconsider the state’s tax incentives for the rapidly expanding data center industry. Howard was invited by Chairwoman Joan Huffman, R-Houston, who acknowledged the group's concerns about large data center projects.

Howard emphasized the need for responsible economic development, detailing local concerns about a proposed 1,200-acre data center campus in Matagorda County, planned for up to 2 gigawatts of electrical capacity. She described a hazardous materials incident that raised questions about rural counties' capacity to handle large industrial projects and the loss of generational farmland to data center development. Her testimony placed Matagorda County at the forefront of a statewide debate over the economic benefits versus the demands data centers place on local electricity, water, land, and public services.

She questioned the justification for billions in tax exemptions, particularly as a report from the Texas comptroller's office indicated that only 20 of 138 facilities approved for exemptions had been audited, with six found non-compliant. Howard pressed for greater accountability and transparency in measuring the long-term returns on public investments. Much of the hearing reportedly focused on the ethics and transparency of data center companies.

Senator Huffman has stated her intention to introduce legislation in the next session to address the sales tax exemption for data centers. The committee members repeatedly questioned whether the jobs created by data centers justified the lost tax revenue and if companies would continue building in Texas without these incentives.