Editor\u2019s note: The above video is from previous, related coverage that aired on July 2, 2026. <\/p>\n
AUSTIN (KXAN) \u2014 On the campaign trail earlier this week, Gov. Greg Abbott called for Texas to block new data centers from being developed in rural neighborhoods. The idea would build upon other reforms he proposed last month<\/a> while running for a record fourth term in office.<\/p>\n During a stop in Bullard with several state lawmakers highlighting plans to reduce property taxes, Abbott drew applause after floating a couple more changes for companies wanting to build data centers in the state. He previously said he would like to require data centers to produce their own power, reuse their own water and reduce electricity costs for residential customers. He said this all would \u201cdovetail right into fighting for east Texas values.\u201d<\/p>\n State senator plans to challenge San Marcos\u2019 data center ban, says city lacks legal authority <\/a><\/p>\n \u201cWe must prohibit them from building AI data centers in rural Texas neighborhoods, and we must eliminate the tax break they are getting,\u201d Abbott said. \u201cThey must be responsible for funding their own projects here in Texas. We will get that done.\u201d<\/p>\n The flurry of proposals comes amid growing backlash in Central Texas and other parts of the state.<\/p>\n Last month, San Marcos became the first city to ban data centers<\/a> from going up anywhere in that community. However, State Sen. Paul Bettencourt, R-Houston, is now threatening a legal challenge against the ordinance<\/a>, arguing the city does not have the authority to do this. Hays County commissioners, though, approved a resolution in late June that put an emergency pause on reviews, processing and approvals of high-water-use and large-scale industrial projects, like data centers,<\/a> in unincorporated parts of the county through the end of the year.<\/p>\n Additionally, the most recent poll from The Texas Politics Project and the University of Texas showed a majority of Texas voters (56%) said they are opposed to the construction of a data center in their community<\/a>, with the highest opposition coming from 62% of rural Texans. Mark Jones, a political science professor at Rice University, said those voters who live in more rural parts of the state usually are a key bloc of support for Abbott.<\/p>\n \u201cThe governor knows he needs those people to turn out in large numbers and vote Republican in November to provide him with the cushion that he wants to have against Gina Hinojosa and for Republicans more generally,\u201d Jones said.<\/p>\n However, he said all the pushback is clearly having an effect on what political leaders and candidates are talking about now.<\/p>\n \u201cI think it highlights how protesting and raising the issue and highlighting the issue can actually have an effect,\u201d Jones said. \u201cThat is, residents in rural areas didn\u2019t sit quietly and let this happen. They went out and protested. They went to meetings. Their county elected officials went on record as being against it. All of that has raised the salience of the issue, raised coverage of it.\u201d<\/p>\n The governor previously championed tech development. In November he joined Google\u2019s CEO at an event in north Texas to announce a $40 billion investment in cloud and AI infrastructure<\/a> here, which Abbott\u2019s office touted in a press release as \u201cGoogle\u2019s largest investment in any state in the U.S.\u201d Critics are now jumping on Abbott\u2019s other comments at the time when he called Texas \u201cthe epicenter of AI development, where companies can pair innovation with expanding energy.\u201d<\/p>\n State Rep. Gina Hinojosa, who is Abbott\u2019s Democratic challenger in the November election, questions his new plans. She posted on X earlier this week<\/a>, \u201cSomeone knows it\u2019s an election year.\u201d<\/p>\n In a statement sent to KXAN on Friday, Hinojosa said, \u201cNice try. Data centers are moving to Texas because Abbott helped create the most generous tax dollar giveaway to data centers in the country so Texans would foot the bill. This is a CYA move by Abbott. He is backtracking now because I\u2019ve been touring the state since last year with a clear message: data centers are owned by the richest men in the world and they should pay for themselves.\u201d<\/p>\n She added, \u201cGreg Abbott has zero credibility here \u2013 no one believes that the arsonist is going to put out the fire.\u201d<\/p>\n Regardless of who wins in November, Texas lawmakers are signaling they\u2019ll likely make regulating data centers a priority during next year\u2019s legislative session. During the past few months, they have already held several interim legislative hearings focused on transparency as well as the water usage<\/a> of these types of facilities. The work may ultimately serve as a guide for what\u2019s discussed when the Texas legislature reconvenes in January.<\/p>\n Copyright 2026 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.<\/p>\n