Push back on data centers by Texas voters gains attention of state GOP leaders, Democratic challengers
Many people across the state, including suburban and rural Texans, are unhappy about data centers, particularly AI data centers. Their concerns and pushback have gotten the attention of Gov. Greg Abbott, other statewide Republican leaders, and Democratic candidates.
As a result, the governor has issued a variety of directives on data centers since June, including a pause on data center development and lawmakers in Texas are reacting.
Democratic candidate for Lt. Gov., Vikki Goodwin, said this issue has become front and center for residents.
"We've seen more people come out on this issue than any other in recent days, months," she said.
Goodwin has appeared at rallies in Fort Worth and across the state opposing data centers.
Earlier this month, Abbott directed the Public Utility Commission of Texas and ERCOT to conduct a comprehensive audit of all data centers that are going through the grid operator's interconnection process.
As part of the audit, data center developers will have to disclose ownership and how they're paying for them, how they're obtaining power, and how much the data centers will consume.
It's the same thing for water usage. Developers will have to say how they're reducing impacts on communities, including noise and light pollution. Only data centers that comply with requirements by these agencies and state law will be allowed to connect to the grid.
The governor previously unveiled other guidelines.
Gov. Abbott's data center audit
"It requires them to provide their own power, to provide their own water, and reuse their own water to generate electricity in a way that adds power to the power grid, so that electricity prices don't go up and to not build in local neighborhoods and end any economic incentives provided by the state of Texas," Abbott told reporters at a news conference in Austin on Aug. 10.
Republican and Democratic leaders have said they want to end state sales tax incentives for data centers that were approved by the state legislature in 2013, when the state was trying to lure the industry.
Since the governor's announcement about the audit, the Data Center Coalition sent Abbott and other Republican leaders a letter last week saying it and 44 member companies support the new approach.
A polling memo by Cygnal, a Republican firm, released on "X" one day after Abbott announced the pause, showed 82% of Texans supported his policy.
Another poll by Texas Public Opinion Research, headed by Luke Warford, a Texas Democrat, showed 79% of Texans support requiring large AI data centers to disclose water consumption and avoid overused aquifers, and fund conservation projects, while 75% support data centers to fund their own grid upgrades and not pass electricity costs onto ratepayers.
Dem candidate wants to build on Abbott's directive
Goodwin told CBS News Texas that she wants to build on the governor's directive, saying lawmakers need to act now.
"I think that's a good step," said Goodwin. "But I would like to have that put into law. Right now, it's just the governor asking for those things to happen, and what's the enforcement? We need to have the legislature back that up by, again, having a special session, putting this into law, making sure there's some way to enforce what the Governor is asking for."
In an interview with CBS News Texas, Republican Congressman Pat Fallon of Frisco praised the governor's new data center policy.
"I think it was a thoughtful, good step that the governor put in place," said Fallon. "He was listening to his constituents, over 30 million of them. They share those concerns, as I do."
While the state legislature is not in session, lawmakers are actively discussing the data center controversy.
On Wednesday morning, the Texas House State Affairs Committee will be getting an update on this issue at the Texas Capitol.
Watch Eye On Politics at 7:30 Sunday morning on CBS News Texas on air and streaming
