Abbott calls for ban on data center development in rural Texas
Gov. Greg Abbott called for a ban on data center development in rural Texas neighborhoods during a campaign stop Tuesday night.
Speaking to supporters in Bullard, Abbott called for pushing back against data centers that "are trying to build in our neighborhoods."
What they're saying:
"We must prohibit them from building AI data centers in rural Texas neighborhoods, and we must eliminate the tax break they are getting," Abbott said. "They must be responsible for funding their own projects here in Texas."
The comments are the latest in a seeming shift for the governor, who last month called for stricter regulations on data centers and their construction.
"I've made it clear already that any AI data center even thinking about coming here, they've got to bring their own money, their own power, reuse their own water and do it in a way that reduces the cost of electricity for residents across our state," Abbott said.
Abbott has previously welcomed the artificial intelligence industry into the state, calling Texas the "epicenter of AI development" after Google announced a $40 billion investment in the state in November to develop data centers.
Abbott calls for stricter regulations on data center development
Last month, Abbott sent a letter to the Public Utilities Commission of Texas and the Electric Reliability Council of Texas laying out his ideas to hold data centers accountable.
Abbott called for new centers to add power generation to the state's power grid while paying for their own infrastructure costs and connection to the grid. The letter also calls for the mandated use of closed-loop water systems and annual reporting on electricity and water use by data centers.
The governor is also calling on lawmakers to repeal sales tax exemptions and "other outdated or unnecessary incentives" for data centers. Data centers would also be required to consider the communities by reducing their impact through measures such as reducing noise.
The letter set a deadline for July 17 for PUCT and ERCOT to respond.
What they're saying:
"Governor Abbott has been clear that data centers cannot come before Texas families," Abbott's Press Secretary Andrew Mahaleris said. "That is why he directed the PUC and ERCOT to require data centers to pay for their own infrastructure, bring their own power, reuse their own water, and lower residential electric bills. These steps protect Texans from higher costs and negative impacts on their communities."
Data center pushback in Texas
The move comes as communities and local leaders push back against the rapid expansion of data centers in the state.
In May, Hill County officials placed a moratorium on new data centers in their county. The move was met with a lawsuit from developers.
Officials rescinded the moratorium in response to the pressure from the lawsuit and issued a checklist for new large-scale development in the county.
The Angelina County Commissioners Court advised residents to contact state lawmakers after hearing public comments about a proposed data center located outside the Lufkin city limits.
"We have no authority to do a moratorium or to stop any type of development in the county," Angelina County Judge Keith Wright said. "The Texas legislators have consciously limited what we can do, and they've done it on purpose."
The Source: Information in this article comes from comments made by Gov. Abbott during a campaign stop in Bullard, Texas, on June 30, 2026, and previous FOX Local reporting.