Raymond Peña calls for special session on data centers
State Rep. Raymond Peña has sent a letter to Gov. Greg Abbott, requesting a special session of the Texas Legislature to address unregulated data center growth. Peña calls for a pause on new data center approvals and improved state oversight regarding their impact on the electricity grid, water resources, and local economies. The request highlights concerns over aquifer impacts, strained water supplies, and significant sales tax exemptions for data centers.
State Rep. Richard Raymond Peña of Laredo has formally requested Texas Governor Greg Abbott to convene a special legislative session focused on the escalating and largely unregulated development of data centers across the state. In a letter sent last month, Peña urged the Governor to also direct state agencies to temporarily halt new data center approvals, asserting that the industry's rapid growth has outpaced the state's capacity to measure and manage its environmental and economic consequences before the regular session convenes in 2027.
Peña outlined several critical concerns, including the significant strain data center expansion places on the ERCOT power grid, the absence of statewide water use reporting or environmental impact permits for groundwater extraction, and the lack of comprehensive studies by the Texas Water Development Board on cumulative aquifer impacts. He referenced a severe drought in the Corpus Christi area, where Lake Corpus Christi reached historic lows, and noted that local officials in Corpus Christi and San Patricio believe a non-disclosure agreement linked to a data center project in Sinton is impeding emergency water pipeline construction for 500,000 residents.
Economically, Peña highlighted the estimated $1.3 billion annually in sales tax exemptions data centers receive under state laws (HB 5 and SB 2015), while counties often see minimal returns. He cited the Stargate campus in Abilene as an example, which receives an 85 percent property tax abatement, with its tax contributions potentially dropping to zero due to appraisal disputes. Peña also pointed to a June 2026 University of Texas/Texas Politics Project poll indicating that 56 percent of Texas voters, including 44 percent of Republicans, oppose data center construction in their communities.
Emphasizing the urgency, the Laredo lawmaker stated that a special session would enable the Legislature to address these issues proactively "before, rather than after, a Texas community loses its water supply or its residents absorb another round of hidden rate increases." He expressed willingness to provide supporting research for his claims.