Data Center Boom Exposes GOP Faultlines over Local Control
Caldwell County, Texas, faces a data center boom, with local officials and citizens pushing for greater local control to regulate developments due to concerns over energy and water consumption. They are advocating for state legislation to grant counties more land-use authority and proposing a moratorium, despite the state's historical move towards state supremacy over local control. Several data center projects, including those from Tract, Edged, and Powerhouse, are planned for the county.
Caldwell County, Texas, is grappling with a rapid influx of data center developments, leading to significant tension between local Republican officials and state leadership regarding local control over land use. Caldwell County Judge Hoppy Haden, along with concerned citizens organized as the Caldwell Data Center Action Team (DCAT), is pushing back against the projects due to concerns over their immense energy and water consumption, as well as light and noise pollution.
The county is slated for at least four new data center developments, including a 3,000-acre compound by Denver-based Tract and a 330-acre facility by New York-based Edged. Another 500-acre development by Virginia-based Powerhouse is also in progress. These projects contribute to over 400 proposed data centers across Texas, which are projected to quadruple electricity demand by 2032 and consume 161 billion gallons of water this year, according to various state bodies.
In response, Caldwell County commissioners unanimously passed a resolution urging the state to grant counties more land-use authority to regulate data centers. Judge Haden is actively working with State Representative Stan Gerdes and State Senator Judith Zaffirini to draft legislation that would enable counties to impose environmental and resource-use requirements on developers. This legislative push is part of a broader debate within the Republican Party, with Governor Greg Abbott championing the data center boom while local conservatives advocate for greater local control and even a statewide moratorium.
The issue highlights a conflict between state supremacy and local autonomy. While Hood County rejected a moratorium under threat of legal action from Attorney General Ken Paxton, Hill County faced a $100 million industry lawsuit after enacting its own moratorium, eventually reneging on the pause. Activists in Caldwell County are urging local officials to pursue a similar moratorium, although Judge Haden has thus far expressed reluctance to do so without enabling state legislation.