Data centers threaten water and power grids

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A day after the governor touted the project’s failure, Texas leaders are calling for a special legislative session to regulate data centers.

Texas Agriculture Commissioner Sid Miller on Friday, July 24, called on Gov. Greg Abbott to convene a special legislative session to address Texans’ concerns about data centers, warning that continued inaction threatens Texas agriculture, rural communities and the state’s power grid.

“The Governor has called a special legislative session to address issues he believes are urgent. If protecting the lands that feed America, protecting the power grid, and maintaining Texas’ water supply aren’t urgent, I don’t know what is,” Miller said in a statement. “Texas can build more power plants and transmission lines, but it can’t manufacture water. Water is the lifeblood of Texas agriculture, and once it’s gone, it’s gone.”

Mr. Miller also criticized Mr. Abbott on July 23, pointing to the withdrawal of a data center plan in East Texas as evidence that Mr. Abbott’s policies are working.

The governor’s comments followed a June 10 letter to state regulators in which Governor Abbott said he intends to work with the 90th Texas Legislature, which convenes in January 2027, to regulate the industry.

In the meantime, Mr. Abbott has directed state regulators to require the state to fully pay for the power infrastructure needed to operate the data centers. At least 248 data center projects are planned in the state, according to the Texas Tribune.

According to a July 24 news release, Abbott said the Public Utilities Commission of Texas and the Electric Reliability Council of Texas have already taken steps to ensure that Texans do not bear the cost of the power infrastructure built to serve the data centers.

But Mr Miller insisted further action was needed. He accused Mr. Abbott of “perverting Texas agriculture” while allowing “the richest corporations on the planet” to profit at the expense of Texans.

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.

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