Texas

Data center activity in Texas

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Regulatory Environment Score
B
-21 pts

Texas presents a paradox of massive scale and significant regulatory friction, with at least 50 moratoriums enacted alongside 14 rejected, reflecting the sheer volume of development proposals generating local pushback across the state. Zoning outcomes are mixed with at least 37 approvals against 22 denials, and at least 12 projects have been blocked compared to 8 approved despite opposition. The state has seen recent improvement, driven in part by successful navigation of some opposition, but the overall regulatory landscape remains contested. At least 116 companies are active, making Texas one of the most company-dense markets in the country, which underscores that developers view the regulatory challenges as manageable relative to the market opportunity. Compared to neighboring Louisiana and Arkansas, where moratorium counts and opposition levels are far lower, Texas operates at a different scale of both development and regulatory complexity.

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City Council's data center discussion
News Clip4:24KTSM 9 NEWS·El Paso County, TX

City Council's data center discussion

The El Paso City Council held a discussion regarding data center development. Details of the discussion are not available from the provided information.

6/9/2026
Hays County stalls data center moratorium after another Texas county is sued
News ClipAustin American-Statesman·Hays County, TX

Hays County stalls data center moratorium after another Texas county is sued$

Hays County commissioners tabled a proposed 180-day moratorium on water and electricity-intensive developments, including data centers, due to legal concerns and the risk of lawsuits. This comes after Hill County was sued for over $100 million after enacting a similar moratorium, highlighting the legal challenges counties face in regulating data center growth without specific zoning authority. Residents of Hays County have strongly opposed new data center projects due to concerns about resource strain.

6/9/2026
Texas county lifts data center moratorium amid pressure from developer lawsuit
News ClipFOX 4 News Dallas-Fort Worth·Hill County, TX

Texas county lifts data center moratorium amid pressure from developer lawsuit

Hill County, Texas, commissioners voted to lift a recently enacted one-year moratorium on data center construction. This decision came in response to a federal lawsuit filed by developer RCM Hill, LLC, which claimed significant damages. The county instead adopted a checklist of requirements for major industrial developments, including details on water use, traffic, noise, and economic impacts.

6/9/2026
AI Data Centers Could Use 5x ERCOT's Record Demand
News Clip2:24Houston Public Media·TX

AI Data Centers Could Use 5x ERCOT's Record Demand

AI is driving a significant data center expansion in Texas, with proposed projects potentially demanding five times ERCOT's record electricity load. While many projects may not materialize, the sheer scale of the proposals raises concerns about the Texas power grid's capacity.

6/9/2026
Data Center Boom Exposes GOP Faultlines over Local Control
News ClipThe Texas Observer·Caldwell County, TX

Data Center Boom Exposes GOP Faultlines over Local Control

Caldwell County, Texas, faces a data center boom, with local officials and citizens pushing for greater local control to regulate developments due to concerns over energy and water consumption. They are advocating for state legislation to grant counties more land-use authority and proposing a moratorium, despite the state's historical move towards state supremacy over local control. Several data center projects, including those from Tract, Edged, and Powerhouse, are planned for the county.

6/9/2026
Elon Musk Reveals Plans for Orbital AI Data Centers Ahead of SpaceX IPO
News Clipbreitbart.com·Bastrop, Bastrop County, TX

Elon Musk Reveals Plans for Orbital AI Data Centers Ahead of SpaceX IPO

Elon Musk has unveiled detailed plans for SpaceX's orbital AI data centers, which will feature extensive solar panels and liquid radiators. A new "Gigasat" facility in Bastrop, Texas, is under construction to manufacture the enormous solar arrays for these satellites. SpaceX aims to launch up to one million of these orbital data centers, citing an abundance of solar energy and the ability to avoid terrestrial community opposition as key benefits.

6/9/2026
News ClipThe Manila Times·Abilene, Jones County, TX

Crusoe’s Contracted AI Infrastructure Capacity Approaches 5 Gigawatts Across Data Centers and Cloud$

Crusoe announced it has contracted 4.9 gigawatts of AI infrastructure across its data center projects and cloud platform, with a total development pipeline exceeding 40 GW. The company is building multiple large-scale AI data center campuses in the US, including in Abilene, Texas, for Oracle and Microsoft, and additional sites in Texas and Missouri.

6/9/2026
Residents oppose data center water agreement at packed Crystal Clear meeting
News Clipsanmarcosrecord.com·Guadalupe County, TX

Residents oppose data center water agreement at packed Crystal Clear meeting

Residents in Guadalupe County, Texas, strongly opposed a proposed water agreement for the 870-acre Palomino Alpha data center development at a Crystal Clear Special Utility District meeting. Concerns included high water usage during a drought and potential contamination. The board ultimately chose to postpone the decision, requesting additional information.

6/9/2026
Texas agriculture commissioner urges pause on AI data centers amid environmental concerns
News Clip2:50KTXS News·TX

Texas agriculture commissioner urges pause on AI data centers amid environmental concerns

Texas Agriculture Commissioner Sid Miller is urging a temporary statewide moratorium on AI data center development, citing concerns about environmental and community impacts. He is calling for state leaders to pause approvals to study effects on farmland, electricity demand, and water resources. Miller noted that rapid data center growth is already creating challenges for Texas communities, including rising property values and rental costs.

6/9/2026
New Data Centers Eye Texas Hot Spots for Power Grid Connection
News ClipHouston Public Media·Houston, Harris County, TX

New Data Centers Eye Texas Hot Spots for Power Grid Connection

Information from ERCOT reveals specific "hot spots" in Texas where numerous large data centers are seeking to connect to the state's power grid. Houston Public Media is taking a closer look at a Houston Chronicle report detailing these desired locations for new data center development.

6/9/2026
87 acres once gifted as Texas parkland now set for major data center
News ClipChron·Taylor, Williamson County, TX

87 acres once gifted as Texas parkland now set for major data center

An 87-acre tract in Taylor, Texas, originally designated as parkland, has been sold to Blueprint for a $1 billion data center development. Local residents have opposed the project, filing a lawsuit that was dismissed by a state district court but is now under appeal. The City of Taylor maintains the property is zoned for industrial use and the project meets all requirements.

6/9/2026
Hays County revives proposal to pause data center construction
News ClipAustin American-Statesman·Hays County, TX

Hays County revives proposal to pause data center construction$

Hays County leaders are set to vote on a proposed 180-day moratorium on water-intensive developments, including data centers, in unincorporated areas. The proposal, which follows a previously tabled moratorium due to lawsuit concerns, also seeks greater authority from the Texas Legislature to regulate data center development. This action comes amid rising concerns about water and power demand, as well as recent community opposition leading to a data center project rejection in San Marcos.

6/9/2026
Meta Invests USD 115 Million in New Data Center Training Program
News Clipworld.infonasional.com·TX

Meta Invests USD 115 Million in New Data Center Training Program

Meta is investing $115 million to launch America's Workforce Academy, a new, free training initiative for data center technicians that guarantees employment upon completion. This program supports Meta's accelerated expansion of AI infrastructure in the US, including major data center projects in states like Texas and Oklahoma. The investment is part of Meta's broader $600 billion commitment to US infrastructure and employment over the next three years.

6/9/2026
Texas agriculture commissioner calls for pause on AI data centers amid impact concerns
News ClipKTXS·Abilene, Jones County, TX

Texas agriculture commissioner calls for pause on AI data centers amid impact concerns

Texas Agriculture Commissioner Sid Miller is advocating for a temporary moratorium on AI data center development across the state. He expressed concerns about the environmental impacts, strain on the electric grid and water resources, and negative community effects like rising property values. The proposed pause aims to allow time for comprehensive research and planning regarding these developments.

6/9/2026