Video shows Texas data center boom brings new challenges
Texas has 248 data centers planned and 519 requests for the ERCOT grid. Gov. Greg Abbott ordered rate and water protections. Watch the video.
Texas’ welcome to the data center industry clashed with growing opposition in June, when a new poll showed a majority of voters opposed the project. Counties have tried and failed, one city has banned them, and the governor has hinted at future restrictions.
The San Marcos City Council adopted a new ordinance on Tuesday, June 16, amending zoning regulations that effectively ban data center development in the city, citing concerns about the strain the project would place on local water and energy resources.
The ordinance narrowly passed on a 4-3 vote, making it the first time a Texas city has banned data centers. But this isn’t the first sign of opposition from Texans to the industry.
A poll released last week by the University of Texas and the Texas Politics Project found that 56% of Texas voters oppose building data centers in their region, with 42% strongly opposed.
Two Texas counties also attempted to halt data center construction this year, but neither was successful.
As the Texas Tribune reported, Hill County leaders passed a moratorium on the data center, but it was later rescinded after the developer sued the county for $100 million in June. Another moratorium was in place in Hood County, but county leaders rescinded it after the Texas Senate sought the attorney general’s opinion on whether the county could impose such restrictions.
Texas leaders are also eyeing data center regulationsMr. Abbott announced on June 10 that he had directed state regulators to require the implementation of the DA.The ta center must fully cover the cost of the electricity infrastructure necessary for its operation.
Mr. Abbott indicated that he intends to work with the 90th Texas Legislature, which convenes in January 2027, to:
- Require data centers to implement best practices such as setbacks, noise reduction technologies, and other measures to reduce their impact on local communities.
- Codifies actions by state regulators to require data centers to pay for their own electrical infrastructure costs.
- The data center will definitely increase Texas’ power demand as well as power capacity.
- Require all new data centers to be built with water-efficient technologies such as closed-loop cooling systems.
- Require large data centers to annually report electricity and water usage to state regulators.
- Eliminate sales tax exemptions and other outdated or unnecessary incentives for data centers.
Mateo Rosiles is a Texas Connect reporter for USA TODAY and local Texas newspapers. Do you have any news tips for him? Email us at mrosiles@usatodayco.com.
