Texas Attorney General Investigates Proposed Data Center in Taylor; Governor Orders Statewide Audit

News Clip0:55CBS Austin·Taylor, Williamson County, TX·9/18/2026

Texas Attorney General Ken Paxton is investigating a proposed AI data center in Taylor on land originally designated for public park use. Concurrently, Governor Greg Abbott has ordered an audit of data centers connecting to the state's power grid, examining their electricity and water demands, public incentives, and community impacts.

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Gov: Office of the Texas Attorney General, Governor of Texas

Texas is currently home to 139 operational data centers, with an additional 353 facilities reportedly in various planning stages across the state.

State leaders are intensifying scrutiny of these developments. Attorney General Ken Paxton has launched an investigation into a proposed AI data center project in Taylor, Texas. The inquiry focuses on the property's original conveyance in 1999, which designated the land for future public park use. The property was later sold to the data center developer for $10 million, and the Attorney General's office is examining whether the original land use restriction remains applicable.

In a related development, Governor Greg Abbott has directed a comprehensive audit of all data centers seeking to connect to the Texas power grid. The audit aims to assess their anticipated electricity and water consumption, the public incentives provided to these companies, and their broader impact on surrounding communities and infrastructure.