Texas Republicans Turn on Data Centers
State with most data centers in the US proposes regulations and reforms, putting big tech companies on notice over water usage and energy consumption
Texas Republicans have made a significant shift in their stance on data centers, with candidates proposing regulations and reforms to address concerns over water usage, energy consumption, and economic development. The state, which has more data centers than any other, is now putting big tech companies on notice.
The change in stance is reflected in the upcoming elections, with data centers becoming a major issue in the races for governor and a US Senate seat. Ken Paxton, the attorney general, has published a four-point Texas First Data Center Plan, which calls for a federal DATA Act, closed-loop water systems, a ban on Chinese technology inside data centers, and criminal liability for AI safety violations.
James Talarico's Hold Data Centers Accountable Plan would end state sales tax incentives for data centers, establish federal minimum standards, give local communities more control over projects, and require closed-loop water systems. The overlap between the two plans is notable, with both candidates proposing similar water policies, which suggests that the issue has stopped being about ideology and started being about practical concerns.
Greg Abbott, the governor, has also taken action, ordering a pause on new grid connections pending an audit in August. This move comes despite his previous championing of a $40bn Google investment in the state just nine months earlier. The state's inquiry into the water and electricity use of data centers has also raised concerns, with only 28 of 377 companies responding.
## What's at Stake The shift in stance by Texas Republicans has significant implications for big tech companies, which have invested heavily in the state's data centers. With 474GW of interconnection requests, about 90% of which are from data centers, the state's grid is under pressure. The proposed regulations and reforms aim to address these concerns, but they also pose a risk to the state's economic development, which has been driven in part by the growth of the data center industry.
The fact that data centers have become a major issue in the upcoming elections suggests that the public is increasingly concerned about the impact of these facilities on their communities. As the state with the most data centers in the US, Texas is at the forefront of this issue, and the outcome of the elections will be closely watched by big tech companies and industry observers alike.
