Cuellar: Data Center regulation and grid reliability will be defining issues for both Congress and Texas Legislature in upcoming sessions

U.S. Rep. Henry Cuellar is championing federal legislation aimed at reining in the rapid expansion of data centers, which he warns pose a significant threat to South Texas's water supply and electrical grid. Speaking to small business owners and agricultural stakeholders in Alton, Texas, Cuellar outlined his proposed "Ratepayer Protection Bill of Rights." He emphasized that technology companies should bear the full costs associated with their energy-intensive operations, rather than passing them on to local residents and agricultural producers.

Cuellar highlighted a critical regulatory loophole in Texas, where county governments lack the power to zone or restrict heavy industrial developments like data centers outside city limits. He noted strong public opposition across his district, with over 80% of Democrats and 70% of Republicans against unchecked data center proliferation. His bill seeks to prohibit utility providers from passing grid upgrade or increased generation costs onto residential ratepayers, establish protections for local aquifers and municipal water supplies, and mandate operational noise controls for data centers.

While acknowledging potential challenges in the current House, Cuellar stated he has collaborated with key House leaders, including Rep. Frank Pallone, to advance the bill. He anticipates that data center regulation and grid reliability will be defining legislative issues for both Congress and the Texas Legislature in their upcoming sessions, underscoring the growing concern over the industry's impact on local infrastructure and resources.