Greg Abbott Calls for Ban on Rural AI Data Centers

Governor Greg Abbott called for a prohibition on the construction of artificial intelligence data centers in rural Texas neighborhoods during a campaign stop in Bullard. This position marks a shift from his previous support for the industry, which included a $40 billion investment by Google. Abbott is demanding the elimination of tax breaks for these facilities and insisting that companies fund their own projects to avoid increasing electricity costs for residents.

These demands expand upon a regulatory framework Abbott introduced on June 10 via a letter to the Public Utility Commission of Texas and the Electric Reliability Council of Texas. The framework requires data centers to provide their own power and water, fund their own infrastructure, and implement residential setbacks.

The governor's push follows a trend of rural opposition. The city of San Marcos recently implemented an outright ban on data centers through zoning laws, while Hill County briefly considered a moratorium before reversing course due to a $100 million lawsuit. Rural activists argue that these facilities threaten air quality, water availability, and power costs. Parallelly, the Morris County Commissioners Court adopted a June 22 resolution urging state legislators to implement stricter regulations, seeking greater local control and transparency regarding environmental impacts.