Data center activity in Texas
Texas has the largest market activity in the nation, with at least 329 companies active, but it also leads in local moratoriums with at least 382 enacted against 33 rejected. Zoning remains slightly favorable, with at least 68 approvals versus 48 denials, but opposition has proven effective, blocking at least 74 projects while 34 advanced despite objections. The state has slipped over the past quarter. Texas faces considerably more friction than neighboring Louisiana, even though its scale keeps it a top destination.
Texas has the largest market activity in the nation, with at least 329 companies active, but it also leads in local moratoriums with at least 382 enacted against 33 rejected. Zoning remains slightly favorable, with at least 68 approvals versus 48 denials, but opposition has proven effective, blocking at least 74 projects while 34 advanced despite objections. The state has slipped over the past quarter. Texas faces considerably more friction than neighboring Louisiana, even though its scale keeps it a top destination.
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OpenAI held a small-business training event for Abilene-area business owners as it prepares to bring a data center to the community. Local business owners discussed concerns about the project but said the community could benefit if the facility is developed responsibly.
A Houston Advanced Research Center study warns that Texas’ rapid data center expansion could reverse decades of air-quality improvements, particularly if facilities use on-site fossil-fuel generation. The Texas Commission on Environmental Quality has suspended its automated online permit filing system and is requiring physical applications while officials review data center impacts on water, power and permitting.
Candidates for Harris County judge discussed county spending, property taxes and data centers during a political debate. The available article information does not provide details about specific data center projects, companies or policy proposals.
Bastrop County commissioners approved a resolution requesting that the Texas Commission on Environmental Quality hold a public meeting about a proposed natural gas-fired power plant intended to support Pacifico Energy's 2,842-acre Cedar Creek data center campus. The request would give residents an opportunity to raise concerns about the project.
Watchdog groups said the Texas Commission on Environmental Quality approved 35 data-center-related permits after Gov. Greg Abbott directed the agency to halt such approvals. TCEQ disputed that the authorizations were operational permits, but later suspended 17 of them and temporarily shut down its electronic reporting system.
Tarrant County Commissioner Matt Krause, Fort Worth Council member Elizabeth Beck and Public Citizen Texas director Adrian Shelley discussed how Texas should regulate data centers at the Fort Worth Report Growth Summit. They debated local control, tax incentives, public notification and whether cities should act before the Legislature establishes statewide rules, while residents and officials continue to criticize the proposed Circle T data center near Westlake and Keller.
The Texas Commission on Environmental Quality temporarily disabled its online permit filing system so staff can identify applications related to data centers. The move follows complaints that the agency approved data center permits despite Gov. Greg Abbott’s order pausing such permits while the state reviews their water and power needs.
Carrier is investing more than $600 million in a new Texas plant that will manufacture cooling equipment for data centers. The investment reflects growing demand for large-scale climate-control systems as artificial intelligence drives data center expansion.
Data centers have become a major issue in Texas political campaigns amid growing public opposition and concerns about weak regulation. Gov. Greg Abbott announced a six-month pause on data center permits, and the Texas Commission on Environmental Quality later said it had stopped accepting permit filings.
The Texas Commission on Environmental Quality shut down its online permitting system after watchdog groups accused it of approving stormwater permits tied to data center construction despite Gov. Greg Abbott's pause on data center permits. TCEQ said it suspended data center-related stormwater and wastewater permits and will manually review applications, while the governor's office denied that prohibited permits had been approved.
A Houston Advanced Research Center study warns that Texas data center growth could significantly increase nitrogen oxide emissions if facilities rely on on-site natural-gas generation instead of grid power supported by renewable energy. Bastrop County residents are also raising concerns about pollution and construction impacts from nearby data center and power projects.
Gradiant has signed a contract to provide turnkey water and wastewater infrastructure for a hyperscale AI data center campus in West Texas. The system is designed to maximize water recycling and reuse, minimize freshwater withdrawals, and discharge no wastewater to surface waters amid a pause in data center permitting and heightened scrutiny of water use.
Texas regulators issued at least 16 data center-related permits after Gov. Greg Abbott ordered permitting to halt, including a stormwater permit for a Sitespan project near San Antonio and Seguin. The permits have since been suspended, and the Texas Commission on Environmental Quality shut down its automated filing system while the state reviews applications manually.
A report claims the Texas Commission on Environmental Quality has continued reviewing data center-related applications despite Gov. Greg Abbott’s directive to pause approvals. The report cites stormwater approvals, emissions certifications, air-quality notices and expedited reviews, prompting a call for a statewide data center moratorium.
Abilene, Texas, is preparing for Stargate, an 800-plus-acre artificial intelligence data center campus expected to be among the largest in the country. Residents are concerned about increased traffic, road safety and the rising cost of living, while Mayor Hurt says the development will generate tax revenue and benefit the city over the long term.
The Texas Commission on Environmental Quality shut down its automated online permit filing system following criticism from watchdog groups over alleged violations of an agency directive. The controversy comes as the Taylor City Council approved a development agreement that could enable a 664-acre data center campus near Taylor, prompting concerns from nearby residents.
Data center expansion across rural Texas is prompting growing opposition over water use, power bills, light pollution, transparency and property values. The backlash is becoming a political issue ahead of the 2026 elections, potentially challenging Republican incumbents and candidates who have supported the state’s business-friendly approach.
The Texas Commission on Environmental Quality temporarily disabled its automated permit filing system after watchdog groups identified stormwater permits they said were improperly issued for data center construction. The agency said applications potentially related to data centers will now be reviewed by staff, following Gov. Greg Abbott's directive to pause data center permits.
The Middle Pecos Groundwater Conservation District approved two Rustler Aquifer drilling permits tied to Poolside's Project Horizon data center development. A separate request for 970 acre-feet of Pecos County groundwater for data center use was designated a contested case.
Stream Data Centers withdrew from negotiations over a Young County tax abatement for its planned 2,500-acre hyperscale campus near Graham after opposition from local landowners. Graham officials are instead advancing a proposed agreement with Stream developer Headwaters Site Development that would provide water and wastewater services while requiring cooling, noise, lighting and infrastructure protections.