Patrick directs committees to examine data center growth and THC impacts

Patrick directs committees to examine data center growth and THC impacts

News ClipFOX 7 Austin·TX·4/1/2026

Lt. Gov. Dan Patrick has directed Texas Senate committees to examine the impacts of data center growth across the state. These investigations will focus on water demands, electrical infrastructure, and the sales tax exemption currently offered to data centers. The findings will inform potential legislation in the upcoming 2027 legislative session.

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Gov: Texas Lieutenant Governor Dan Patrick, Texas Senate, Texas Legislature, Texas Governor Greg Abbott
Texas Lieutenant Governor Dan Patrick has issued new interim charges for state Senate committees, directing them to investigate several key issues ahead of the 2027 legislative session. A primary focus will be on the widespread growth of data centers across Texas. Patrick has tasked three committees with examining different aspects of data center expansion. The Water, Agriculture and Rural Affairs Committee will scrutinize the significant water demands of data centers, aiming to understand consumption rates and prevent industrial growth from increasing water costs for residents and farmers. The Business and Commerce Committee is charged with studying the necessary infrastructure frameworks to support the large electrical loads required by data centers, while also balancing this growth against its impact on landowners. Additionally, the Finance Committee will review the sales tax exemption currently provided to data centers to ensure that Texans are adequately benefiting from these investments. These directives are part of a broader set of legislative priorities released by Patrick, which also include issues related to THC products, gambling, property tax cuts, and election security.