Texas lawmakers to hear testimony Wednesday on impact of data centers

News Clip1:37KVUE·Taylor, Williamson County, TX·8/19/2026

Texas lawmakers are holding a hearing on the impact of data centers, focusing on economic effects, regulations, and power grid issues. This comes as a large data center project, Project Mustang, near Taylor, Texas, is on hold, with residents expressing concerns about its community impact and city oversight. The project is expected to be revisited by commissioners in 90 days.

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Gov: Texas State Legislature, Texas House State Affairs Committee, City of Taylor

Texas state lawmakers, specifically the House State Affairs Committee, are set to hear public testimony regarding the widespread impact of data centers across the state. The committee will examine the economic effects, existing regulations, and implications for the state's power grid, as well as how communities can manage this growth.

This legislative attention comes amidst a significant local development: a massive data center proposal, known as Project Mustang, located just east of Taylor, Texas, is currently on hold. The project, encompassing approximately 665 acres between FM 112 and US 79, includes plans for multiple data center buildings and an on-site power generation facility.

Residents near the proposed site have voiced concerns about the potential strain such a large development could place on their community and local infrastructure. The City of Taylor is reportedly negotiating a voluntary annexation with the developer to gain more oversight, but some residents question the city's capacity to manage the increased responsibility. Local commissioners are expected to revisit Project Mustang in about 90 days, allowing the developer time to provide additional information.