James Talarico calls for tighter regulations on data center development
Democratic U.S. Senate nominee James Talarico called for tighter regulations on data center development across Texas, including stronger local oversight and measures to protect consumers, the power grid and water resources. Other Democratic candidates have called for a moratorium, while Gov. Greg Abbott has proposed separate restrictions and said a project near Cedar Creek Lake withdrew after failing to meet his standards.
Democratic U.S. Senate nominee and state Rep. James Talarico unveiled a plan in Austin to impose tighter controls on Texas data center development. His proposals include ending tax incentives, giving local officials more authority over projects, requiring developers to cover grid interconnection costs, protecting consumers from utility increases and requiring closed-loop water systems. Talarico said Texas should continue welcoming innovation but ensure communities have a meaningful say.
The proposals come amid growing political and public opposition to the industry’s rapid expansion, particularly in rural areas. Democratic gubernatorial nominee Gina Hinojosa urged Gov. Greg Abbott to issue an emergency moratorium until the Legislature reconvenes and proposed union labor requirements, greater transparency about water and energy use, and expanded local authority. Abbott has also proposed repealing the data center sales tax exemption, requiring new facilities to add power generation and restricting development in rural neighborhoods; his office said a project near Cedar Creek Lake had withdrawn after failing to meet state standards.