
Texas Republicans at odds with Trump AI expansion goals into rural areas
News ClipThe Center Square·Hood County, TX·3/26/2026
Texas Republicans and rural communities are increasingly opposing a Trump administration plan to expand AI and data centers in rural areas, citing concerns over water, electricity, and local costs. Hood County commissioners recently postponed two data center projects by MARA Holdings, and State Rep. Helen Kerwin has called for a statewide pause on proposals.
zoningoppositionenvironmentalannouncementgovernmentelectricitywatermoratorium
OpenAI
Gov: Trump administration, Department of Justice, Texas Department of Information Resources, Texas AI Council, Hood County Republican Party, Hood County commissioners, Gov. Greg Abbott, State Rep. Helen Kerwin, State Rep. Shelley Luther
Texas Republicans are expressing growing opposition to a Trump administration plan to expand artificial intelligence and its supporting data centers into rural communities. This pushback is fueled by concerns over the significant demands these facilities place on local water and electricity resources, potential strains on the Texas grid, and the lack of protections for local communities regarding issues like eminent domain.
President Donald Trump's executive order aims to promote national security and economic dominance by expanding AI, and it seeks to preempt state AI regulations, arguing that "excessive State regulation thwarts this imperative." The order also establishes an "AI Litigation Task Force" within the Department of Justice, designed to sue states to challenge their laws and restrict federal funding for non-compliance. Exceptions to this preemption include child safety, AI data center infrastructure and permitting, and state government procurement of AI.
In Hood County, commissioners recently voted to postpone action on two data center projects proposed by MARA Holdings, a decision that Hood County Republican Party Chairman Greg Harrell indicated reflects the volatility of the hyperscaler data center market, referencing OpenAI's decision to scrap its Stargate data center project in Abilene. State Representative Helen Kerwin has formally requested Governor Greg Abbott to implement an immediate moratorium on data center proposals across rural Texas to allow for comprehensive impact studies. State Representative Shelley Luther also conveyed to Trump officials that while data centers are crucial, their expansion should not come at the expense of rural communities by draining water and power supplies or degrading property values.