Abbott says no to rural data centers
Gov. Greg Abbott has called for a ban on new AI data centers in rural Texas areas and additional regulations, including requirements for centers to generate their own power and reuse water. This proposal, which includes eliminating tax breaks, comes amid growing opposition due to data centers' high electricity and water demands. Several Texas counties are advocating for this issue to be a priority in the next legislative session.
Gov. Greg Abbott announced a proposal this week to ban new artificial intelligence data center construction in rural Texas areas and impose stricter regulations on their operations. Speaking during a campaign stop in East Texas, Abbott stated that these facilities must "bring their own power, reuse their own water, and do it in a way that reduces electricity costs for residents." He also called for the elimination of current tax breaks for data centers, emphasizing that they should fund their own projects.
This directive follows growing statewide opposition to data centers, primarily due to their significant demands for electricity and water, alongside concerns about noise pollution. A recent poll by the University of Texas at Austin indicates strong support for such measures among rural Texans. Abbott previously advocated for Texas as a hub for AI development but has now shifted his stance to prioritize community impact.
Seven Texas counties—Hays, Caldwell, Henderson, Hill, Hood, Somervell, and Van Zandt—have urged state lawmakers to make data center regulation a top priority for the upcoming legislative session in January or to address it in a special session. Abbott's concerns were further outlined in a June 10 letter to the Public Utility Commission, instructing the agency to ensure data center expansion does not negatively impact Texans and local communities. The Electric Reliability Council of Texas (ERCOT) reports over 480 large data centers have sought grid connection approval by 2032.