Gov. Abbott: Texas Legislature to hold hearings regarding data centers this week
Governor Greg Abbott announced that the Texas Legislature will hold hearings this week to discuss data centers, focusing on eliminating sales tax exemptions. He also reiterated statewide guidelines requiring data centers to use water-efficient technologies and report water and electricity usage. Local governments like Fort Worth and Hood County are grappling with data center regulations, with Fort Worth considering a moratorium.
Governor Greg Abbott announced that the Texas Legislature will convene hearings this week to address the burgeoning data center industry, with a primary focus on financial implications. Speaking at a press conference in Fort Worth, Abbott stated his support for eliminating sales tax exemptions for data centers, citing an unsustainable projected cost to the state of $3.3 billion by 2028-29, a significant increase from $14.6 million in 2014-15.
Abbott also reiterated his previous stance that data centers should not be located in neighborhoods. He confirmed that all existing and proposed data centers in Texas must comply with statewide guidelines issued on June 10, which mandate the use of water-efficient technologies and require large facilities to report annual water and electricity usage to the Public Utility Commission of Texas.
The issue of data centers has become contentious across North Texas. The Fort Worth City Council is scheduled to consider implementing a city-level moratorium on new data center developments at its August meeting, following calls from local advocacy groups. In contrast, Hood County rejected a proposed six-month moratorium in May. San Marcos has already taken legislative action, becoming the first city in Texas to ban data centers within its municipal limits.