Texas Republicans press for local control over spread of AI data centers on first day of convention
The Republican Party of Texas aims to make regulating AI and large-scale data centers a top legislative priority for the 2027 Legislature, proposing measures such as independent infrastructure requirements, local control over zoning, and impact fees. This initiative, driven by rural delegates' concerns, seeks to empower local communities in managing data center development. The proposals contrast with some state leaders' priorities, including Gov. Greg Abbott, who has not included local control in his own AI regulation plan.
The Republican Party of Texas (RPT) has designated the regulation of artificial intelligence (AI) and large-scale data centers as a top legislative priority for the 2027 Legislature, driven by strong support from rural delegates. Meeting at their biennial statewide convention in Houston, the party's Legislative Priorities Committee, informed by significant public testimony, has drafted a set of reforms.
These proposals include requiring data centers to secure independent power generation and non-potable water sources to prevent burdens on local utilities and taxpayers. Further, the draft language seeks to grant cities and counties final authority over zoning and land development decisions for hyper-scale data centers. It also mandates impact fees from data center construction companies to compensate communities for infrastructure use and potential environmental damage, while prohibiting all taxpayer-funded incentives for data centers. This push for local control, championed by committee member Patrick Von Dohlen, reflects concerns among rural Texans about the proliferation of data centers without adequate local oversight.
The RPT's position appears to diverge from some state leaders, including Gov. Greg Abbott, whose recent proposal on AI regulation omits provisions for local control. State Senator Paul Bettencourt, chair of the Senate Local Government Committee, expressed openness to more local input but warned against a "patchwork quilt" of regulations across Texas' 254 counties, emphasizing the state's economic and national security interests in data center development. Meanwhile, concerns persist about the legal authority of counties, highlighted by Bettencourt's letter to Attorney General Ken Paxton regarding their power to ban data center construction. The debate also touches upon recent state laws, like the "Death Star" bill, which have limited local governments' ability to enact ordinances beyond state law.