Data center controversy is hot topic at Texas Capitol
A group of advocates is pushing for a special legislative session and a moratorium on data centers in Texas, citing environmental, water, and electricity concerns. Concurrently, a Texas Senate committee is reviewing sales tax exemptions for data centers, questioning their financial return and broader impacts.
The Alliance for a Clean Texas initiated a "Data Center Week of Action" at the Texas State Capitol in Austin, urging Governor Greg Abbott to convene a special legislative session to enact environmental protections and a moratorium on data center development. Speakers like Linda Pauley and Clayton Tucker from the Texas Farmers Union highlighted concerns over water scarcity, strain on the electric grid, and the need for greater public input for major projects.
Simultaneously, the Senate Finance Committee re-evaluated the 2013 law granting sales tax exemptions to data centers, noting the projected cost has surged from $14.6 million in 2014-15 to an estimated $3.3 billion by 2028-29. Committee Chair Joan Huffman expressed concerns over the rapid expansion and its impacts, stating her intent to file new legislation to reexamine the exemption's justification. Ag Commissioner Sid Miller also supported the call for a special session and a one-year moratorium.
Governor Abbott's Press Secretary, Andrew Mahaleris, responded by asserting the Governor's stance that "data centers cannot come before Texas families" and detailing directives to the PUC and ERCOT requiring data centers to pay for their own infrastructure, bring their own power, reuse water, and lower residential electric bills. The Senate Business and Commerce Committee is also slated to discuss the state of the electric grid and the impact of 765 kv transmission lines on private property.