Gov. Greg Abbott calls for ban on data center development in rural Texas neighborhoods

By TAYLOR GOLDENSTEIN and KAYLA GUO/Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune Updated 9:46 PM MESZ, July 1, 2026 Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Share Share Facebook Copy Link copied Print Email X LinkedIn Bluesky Flipboard Pinterest Reddit Gov. Greg Abbott called for blocking new data center development in rural parts of the state during a campaign stop in Texas" class="entity-link entity-location" data-entity-id="156657" data-entity-type="location">East Texas on Tuesday. “We must prohibit them from building AI data centers in rural Texas neighborhoods,” Abbott said at the Bullard event, which primarily discussed his plan to cut property taxes, adding that this issue “dovetails right into fighting for Texas" class="entity-link entity-location" data-entity-id="156657" data-entity-type="location">East Texas values.” Abbott’s push for a prohibition in rural neighborhoods appears to go further than a sweeping regulatory framework he unveiled earlier this month, which called for data centers to add new power generation to the grid, pay for their own infrastructure costs, reuse their own water and implement measures such as setbacks, among other proposals aimed at limiting their impact on residential communities. In a statement, Abbott campaign spokesperson Eduardo Leal said, “everything the Governor said today tracks with his June 10th letter.” “As the Governor said in the letter, he will work with lawmakers to ensure local communities are not adversely impacted,” Leal added. Abbott reiterated his support on Tuesday for the measures laid out in his earlier announcement. Texas governor wants to speed up work on a fly-breeding factory to fight a cattle parasite 4 MIN READ 15 Texas high court rejects removal of Democratic lawmakers who led quorum break over redistricting 3 MIN READ 351 Obama meets with Talarico, aiming to boost Democrat’s bid for US Senate in Texas 1 MIN READ “I made clear already: Any AI data center even thinking about coming here — they got to bring their own money, bring their own power, reuse their own water and do it in a way that reduces the cost of electricity for residents across our state,” he said. “We must eliminate the tax break they are getting. They must be responsible for funding their own projects here in Texas. We will get that done.” In outlining his regulatory recommendations this month, Abbott instructed the Public Utility Commission to “guarantee any data center development does not come at the cost of Texans and our local communities” and to consider how to “minimize adverse impacts on local communities.” The third-term Republican governor had previously been enthusiastic about the influx of companies seeking to build the facilities, calling Texas “the epicenter of AI development” when he announced in November that Google had made a $40 billion investment in cloud and artificial intelligence infrastructure in the state. Abbott has received over $2 million from people and companies linked to the tech and AI industries since last year, E&E News by Politico reported in April. His call for a ban in rural neighborhoods Tuesday comes as many rural counties and activists have attempted to pass moratoriums and called for the Legislature to grant them greater local control to prevent the construction of the centers. Opponents argue that the oftentimes gigantic operations will put their water availability and air quality at risk and threaten to hike their power bills. The Data Center Coalition, a trade group for the industry, did not immediately respond to a request for comment, but it has argued that its members are providing a critical service that the digital world depends upon, bringing immense property tax benefits and helping the U.S. win the AI war over foreign adversaries. The group has also pointed to technological advancements that reduce the facilities’ water needs. A Texas Tribune analysis earlier this month found that nearly half of planned data centers in the state are set to be built in unincorporated areas not governed by cities or towns, up from 12% now. Public polling has shown that data centers are extremely unpopular amongst all Texans and especially those living in rural areas, nearly two-thirds of which opposed construction of the facilities in their community, according to a recent University of Texas/Texas Politics Project poll. The majority of facilities planned or under construction are in state House districts that voted for President Donald Trump and elected a Republican state representative in 2024, the Tribune analysis found, creating a political conundrum for top GOP leadership. Several counties have considered moratoriums. Hill County was the first, but leaders quickly reversed course after getting hit with a $100 million lawsuit by a data center developer. Meanwhile, cities, which unlike counties have broad zoning power, are passing new regulations that attempt to keep the large industrial facilities out, and the city of San Marcos recently became the first to outright ban them. A Texas lawmaker has already said he plans to challenge the ban. Disclosure: Google has been a financial supporter of Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune, a nonprofit, nonpartisan news organization that is funded in part by donations from members, foundations and corporate sponsors. Financial supporters play no role in the Tribune’s journalism. Find a complete list of them here. ___ This story was originally published by Texas-tribune" class="entity-link entity-organization" data-entity-id="20686" data-entity-type="organization">The Texas Tribune and distributed through a partnership with The Associated Press.