Abbott wants Texas lawmakers to turn data center restrictions into law in 2027
Gov. Greg Abbott said he wants the Texas Legislature to enact restrictions on data centers in 2027, including requirements for facilities to pay for electrical infrastructure, conserve water, report resource use and limit noise. The announcement comes after Abbott ordered state regulators to halt data center permits while they review impacts on the electric grid and water supplies, while Democratic challenger Gina Hinojosa called for faster action and criticized the state’s tax incentives.
Gov. Greg Abbott said he wants Texas lawmakers to convert his proposed data center guidelines into state law in 2027. The measures would require facilities to pay for needed electrical infrastructure, use water-efficient cooling, disclose electricity and water consumption, limit noise and other neighborhood disruptions, and potentially eliminate sales tax incentives. Abbott also said cities, counties and residents should have more authority over data center siting and operations.
Abbott’s position follows an order directing state regulators to halt permits for proposed data centers while their effects on Texas’ electric grid and water supplies are reviewed. Democratic gubernatorial challenger Gina Hinojosa accused Abbott of acting too slowly and pointed to impacts from a data center in Dallas’ Joppa neighborhood, while other Republicans, including President Donald Trump and Sen. Ted Cruz, have warned that excessive regulation could hurt U.S. artificial intelligence competitiveness.