Texas Governor Greg Abbott has proposed new regulations for the state’s booming data center industry, including repealing some tax incentives and requiring water-efficient technologies. The move comes as local communities have pushed back against the rapid expansion of data centers, citing concerns over water use, noise pollution, and utility costs.

Background

Data center companies have flocked to Texas, drawn by the state’s promise of minimal regulation. However, with hundreds of data centers already operational and more on the way, local leaders have complained that they lack the power to block construction or expansion. Abbott’s proposals aim to address these concerns, while also ensuring that the industry’s growth is balanced with the needs of local communities.

Abbott directed state regulators to take immediate steps to prevent data centers from shifting development risks and costs onto Texans. He also pledged to work with state lawmakers to roll back sales tax exemptions and other costly incentives for data center developers. The governor’s proposals did not suggest giving local communities more authority over data centers, but instead emphasized the need for state-level regulation.

Reaction

Some environmentalists in Texas have welcomed Abbott’s proposals, citing the need to minimize the environmental impact of data centers. However, the Data Center Coalition, a national industry group, has warned against cookie-cutter regulations, arguing that many data center developers have already taken steps to reduce their environmental footprint.

State Rep. Gina Hinojosa, the Democrat challenging Abbott for governor, accused him of backtracking on his anti-regulation stance. However, Abbott’s supporters argue that the governor is taking a pragmatic approach to balancing economic growth with the needs of local communities.

Original reporting: Texarkana Gazette — read the source article.