TEXAS — Residents across Texas have been pushing back against data centers coming to their communities, citing concerns over water and power. Gov. Greg Abbott has shown support for artificial intelligence (AI) data centers coming to the state, but he is now calling for regulations ahead of next year’s legislative session.
In November, Abbott uplifted data centers, saying the Lone Star State is the epicenter for AI development. However, data centers have been extremely unpopular in dozens of counties such as Hays, with people wanting tighter regulations on these projects.
Last week, the governor released a letter outlining recommended regulations and making discussions about data centers a priority for the 2027 legislative session. His aide told Spectrum News this is not a switch-up in his stance on data centers, but Hays County Judge Ruben Becerra believes the upcoming November election has played a part in the release of this letter.
Becerra also said the proposed regulations don’t go far enough.
“I remain the county judge for seven more months, and I will continue every freakin’ day to fight for our community,” Becerra said during a Commissioners Court meeting at the beginning of June.
This fight stretches back to February, when the judge first proposed tighter regulations on high-volume industrial water users, which include data centers.
“We created a 180-day pause specifically to help us tool, as a county, for the assessment of these processes,” Becerra said. “But it’s never a moratorium. It’s never intended to be a anti-data center movement. It is just assessing and protecting and defending those critical resources that we have.”
Some county commissioners expressed concerns over his latest resolution draft.
“If we can work through a better language on that, I’m happy to consider that,” said Debbie Gonzales Ingalsbe, Hays County commissioner for Precinct 1, in the June meeting.
So, once again, a measure to address high-volume industrial water users was tabled. The resolution will be revisited on June 23.
After seeing Hill County in North Texas get slapped with a $100 million lawsuit from a data center developer following the passage of a moratorium, other counties are hesitant to take similar actions.
Becerra is calling on state officials to give county leaders more regulatory authority over industries like data centers.
“Our legislators have time and time again made it harder and harder for local government to have local control,” Becerra said.
Some of the recommended regulations Abbott outlined in his letter include requiring data centers to use technology like closed-loop cooling systems to conserve water, to report on electricity and water use annually to the Public Utility Commission of Texas and to repeal sales tax exemptions for data centers.
With the November midterms being less than five months away, Becerra finds the timing of this letter “convenient.”
“Because the governor has the election looming upon him, that he’s going to try to find a way to thread the needle on the data center promotions that he’s been touting so aggressively nationwide,” Becerra said.
When Spectrum News reached out to the governor’s office for comment, his aide said the letter is not in conflict with the governor’s past support of data center development and gave no further comment.