HyperLocal Loop
Jul 05, 2026
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Abbott Calls for Ban on AI Data Centers in Rural Texas

Texas Gov. Greg Abbott is calling for a ban on new artificial intelligence data centers in rural Texas neighborhoods. Abbott made the announcement during a property tax event in Bullard, East Texas, saying that any future AI developments should be required to fund their own infrastructure and avoid placing additional burdens on local communities.

Concerns Over Infrastructure and Community Impact

Abbott’s proposal expands on a regulatory framework he outlined in June, which would require data centers to provide their own power generation, reuse water through closed-loop systems, pay for infrastructure costs, and adopt measures intended to reduce impacts on nearby residents. The governor has also called for eliminating tax incentives currently available to data center developers and requiring projects to finance their own infrastructure rather than relying on public subsidies.

Texas has become a major destination for AI-related development, with projections showing the state on pace to become the nation’s leading market for AI data centers. However, opposition has grown in communities where large-scale facilities have been proposed, with residents raising concerns about increased electricity demand, water consumption, noise, and the limited number of permanent jobs created by the facilities.

A June survey by the University of Texas’ Texas Politics Project found that 56% of Texans oppose data center construction in their communities, while 29% support it. Political analyst Mark Jones of Rice University said the issue reflects a growing divide between support for AI technology and resistance to nearby infrastructure.


Original reporting: The Dallas Express — read the source article.

OBBM Network Editorial Staff

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Editorial team behind OBBM Network — independent, hyper-local journalism syndicated through HyperLocalLoop and OBBM Network TV.

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