More Texas communities are taking a stand against data centers. Here's how lawmakers are responding

As surveys show widespread concern about data centers in Texas, city and county leaders and Democratic and Republican legislators have called for restrictions or moratoriums on new projects across the state. 

Data center developers seek to use Texas land for new projects as artificial intelligence usage increases, creating a need for additional energy sources and projects to house infrastructure required to power AI. But residents, worried about lack of transparency and the effect the projects could have on their neighborhoods, have pressed legislators to adopt stricter regulations on the projects.

TEXAS DATA CENTER TRACKER: See where data centers are planned or operating near you

On June 16, San Marcos became the first Texas city to effectively ban data centers within city limits, defining data centers in its code and prohibiting their construction in the city via its zoning rules, the Texas Tribune reported. Some residents and legislators have called for a statewide moratorium on the projects.

"There's a lot of either state or local resistance to data centers and that reflects just a lot of suspicion that data centers will drive up water use or drive up electricity rates or be noisy," said Michael Webber, an engineering and public affairs professor at the University of Texas at Austin.

Texas has at least 241 planned projects, according to Cleanview, which provided the data for Hearst's data center tracker. The state is challenging Virginia to become the world's largest data center market, propelled by cheap land, electricity and natural resources, Webber said. But a poll by the Texas Politics Project found that over half of Texas voters opposed the construction of data centers in their communities. 

Lawmakers in at least 15 states have considered temporary data center bans, according to the National Conference of State Legislatures. Earlier this month, Gov. Kathy Hochul announced that New York was the first state to adopt a statewide moratorium. Members of Congress have also proposed legislation for a national moratorium.

Six Texas counties have called for the state Legislature to make data centers a top priority during its next session.

Which Houston-area communities are taking a stand against data centers?  

In the Houston area, Brazoria County passed a resolution on June 10 calling for regulations on data centers within county limits, and Missouri City within Fort Bend County amended its zoning regulations, requiring a special permit, disclosure of projected energy and water usage and public hearings for data center proposals. 

MAP: Texas data center tracker: See where data centers are planned or operating near you

Anti-data center sentiment crosses party lines  

The Texas Politics Project poll shows most Democratic voters say they oppose data centers to some extent. Texas Republicans, on the other hand, are split.

In the Houston area, 63% of residents oppose the construction of data centers within one mile of their homes, due to concerns about power grid reliability and energy demand, according to a study by the University of Houston released in May. Still, 65% of respondents said they use AI at least monthly, contributing to the demand for data centers.

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Residents' concerns come down to cost, local impacts - such as noise complaints - and use of resources such as water and energy, said Evgenia Spears, the water program coordinator for the Sierra Club's Lone Star chapter.

The overarching problem, though, is the lack of transparency around the developments, said Webber, who was previously the chief technology officer at Energy Impact Partners and director of UT's energy institute. In a hurry to build hyperscale centers, developers bypassed necessary communication, he said.

Fears about secrecy are in part due to nondisclosure agreements between developers and counties, said Rachel Hanes, the policy director of the Greater Edwards Aquifer Alliance, a San Antonio-based nonprofit dedicated to the conservation and preservation of the aquifer. 

Hanes said it's even more concerning that in many cases, corporations don't need NDAs to keep information from the public. In unincorporated and rural parts of the state, developers lease or buy land from private owners, and only approach the county when the projects are well underway, she said. 

Hanes said she thinks that problem will persist, even as developers such as Microsoft announce they will stop NDAs with local governments after public backlash. 

"It is a common industry practice to seek NDAs to protect early information about development proposals," Microsoft representatives said in an online statement. "However, we've made the decision that being transparent with the communities where we operate or seek to operate is paramount. This shift is about strengthening public trust, enabling better dialogue, and ensuring that our growth is matched by meaningful engagement."

What do Texas politicians say about data centers? 

On June 10, Gov. Greg Abbott, who's historically supported data center growth in Texas, called for the Public Utility Commission and ERCOT to take steps to protect residents from the costs of data center expansion. 

A Hearst Newspapers analysis of the governor's latest campaign finance report showed several of Abbott's most generous backers are tied to data center deals.

Gina Hinojosa, the Democratic nominee for governor, said in a news release that Abbott "is backtracking now because I've 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."

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"Governor Abbott's position is clear: data centers cannot come before Texas families," Eduardo Leal, Abbott's press secretary, wrote in a statement. "As the Governor outlined in his June 10th letter to the PUC and ERCOT, data centers are required to pay for their own infrastructure, bring their own power, reuse their own water, and lower residential electric bills. Governor Abbott will work with lawmakers next session to ensure that data centers do not negatively impact local communities." 

Both Texas Agriculture Commissioner Sid Miller and the Democratic nominee for his seat, Clayton Tucker, have called for a statewide moratorium. Miller also called for a special session. Rep. Vikki Goodwin (D-Austin) at a recent news conference called for a moratorium, and Rep. Helen Kerwin (R-Glen Rose) wrote an official letter to Abbott encouraging him to consider a moratorium. 

Meanwhile, Rep. Cody Harris (R-Palestine), the chair of the Texas House Committee on Natural Resources, opposes bans. Harris said Texas should focus on responsible water use in an interview with East Texas Now. He also said the U.S. is in a race with China over development, and that opposition to the developments might be influenced by foreign interests. 

In February, state Sen. Paul Bettencourt sent a letter to Attorney General Ken Paxton warning that counties don't have the authority to impose data center bans and urging the state to intervene. Bettencourt said he believes both local moratoriums and city-wide bans will be challenged in court and are ultimately unenforceable in Texas.

Two things Texans can advocate for, Bettencourt said, are that centers bring their own cogeneration units and use closed-loop water systems. Cogeneration captures waste heat and boosts centers' efficiency, according to a report from the U.S. Department of Energy. Closed-loop water systems reduce water consumption, allowing centers to reuse recycled water and freshwater, according to a paper by Compass and the University of Texas. 

"Then, they're very very similar to many of the industrial plants that exist all over the state," Bettencourt said.

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