Gov. Abbott calls for banning data center development in rural Texas neighborhoods
Texas Governor Greg Abbott has proposed new regulations for data centers, including banning their development in rural areas and eliminating their tax breaks. He also advocates for requirements that data centers provide their own power and water, and reduce electricity costs for residents. These proposals come amidst growing statewide opposition to data center construction, with San Marcos having already banned such developments within its city limits.
Texas Governor Greg Abbott recently proposed new restrictions on data center development, specifically calling for a ban on new facilities in rural Texas neighborhoods and the elimination of existing tax breaks for these companies. Speaking on the campaign trail, the Governor also outlined requirements for data centers to bring their own power, reuse their own water, and help reduce electricity costs for residential and small business customers. These ideas are part of broader reforms Abbott announced last month as he campaigns for a fourth term.
The Governor's shift in stance reflects increasing public backlash against data center construction across Texas. For instance, the city of San Marcos voted last month to ban data centers entirely within its city limits. A recent poll from the Texas Politics Project at UT indicates that a majority of Texas voters oppose data center construction in their communities, with nearly two-thirds of rural Texans expressing opposition. Political science professor Mark Jones noted that securing support from rural voters is crucial for Governor Abbott.
This move marks a departure from Abbott's previous position, where he championed tech development in Texas. Last November, he joined Google's CEO in North Texas to announce a $40 billion investment in cloud and AI infrastructure, touting Texas as an "epicenter" for AI. His challenger, Democrat Gina Hinojosa, criticized Abbott's new proposals, stating that he "helped create the most generous tax dollar giveaway to data centers in the country" and lacks credibility on the issue.
Regardless of the election outcome, Texas leaders are expected to make regulating data centers a priority during the next legislative session. The Data Center Coalition, an advocacy group for the industry, was contacted for comment on the Governor's proposals.