Louderback takes stance on data center regulations

Texas State Representative A.J. Louderback of District 30 announced plans to introduce legislation regulating data center development during the upcoming legislative session, beginning January 12, 2027. Rep. Louderback outlined his position in a social media statement, highlighting growing constituent concerns regarding water availability in South Texas, particularly in Refugio and Goliad Counties, which share resources with Corpus Christi. He noted that multiple companies have expressed interest in developing data centers at the Port of Victoria, Bay City, Jackson County, and Calhoun County. Louderback stressed that any proposed data center projects would be required to supply their own water and power. He specifically mentioned that large data centers consume "an incredible amount of power and water," reinforcing the necessity for self-generated resources, a stance he indicated is also supported by the Governor's office. Separately, the Public Utility Commission of Texas (PUCT) voted in March to publish a draft amendment to the Texas Administrative Code, based on Texas Senate Bill 6 requirements. These amendments propose that data centers seeking 75 megawatts or more connection would need to pay taxes and disclose their energy usage to the Electric Reliability Council of Texas (ERCOT). Further regulations are expected to be considered following an interconnection study by ERCOT, with results to be addressed in the next legislative session. Among the interested parties, Blue Energy and Crusoe Energy already have collaborative plans for a power plant and data center at the Port of Victoria, with construction slated to begin later this year and full operation expected by 2031. Louderback affirmed his commitment to balancing economic development with resource preservation, stating, "We can't drain a county of water resources."