East Texas county judge says state law limits options as residents oppose data center

Angelina County residents expressed significant opposition to a proposed data center by AmpZ Champion Data Center Holdings at a recent commissioners court meeting, citing concerns over light, sound, air, and water pollution. The facility is planned for a former paper mill site just outside Lufkin.

Angelina County Judge Keith Wright informed citizens that state law severely limits the county's ability to enact a moratorium or halt development. He referenced Hill County, Texas, which faced a lawsuit from a developer after implementing a data center moratorium, leading to its rescission. Wright warned that similar actions would incur substantial costs for Angelina County.

Lufkin city officials stated the proposed data center would create 30 jobs, use a closed-loop water system of 500 gallons daily, and not impact residential water or electric bills. However, any tax rebates would be managed by the county, which Judge Wright identified as the only avenue for the county to impose restrictions through agreements like tax abatements or road use agreements. Democratic candidate for Texas House District 9, Shelly Tatum, advocated against tax abatements, arguing property taxes are the only sure benefit for residents.

Further escalating the statewide discussion, Texas Governor Greg Abbott issued a letter to the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT). He called for new regulations requiring data centers to fully fund their electric infrastructure costs to prevent residential rate increases, submit usage reports, and contribute to the grid rather than just increasing demand.