Texas governor proposes ban on rural data centers after shifting stance on environmental and infrastructure impact.

Texas Governor Greg Abbott is calling for a ban on AI data centers in rural neighborhoods and the elimination of their tax breaks—a significant reversal from his enthusiastic support of the industry just months ago.

At an event in East Texas this week focused on property taxes, Abbott articulated strict conditions for any data center development in the state: "Any AI data center thinking about coming here, they have to bring their own money, bring their own power, use their own water, and do it in a way that reduces the cost of electricity for residents across our state. We must prohibit them from building AI data centers in rural Texas neighborhoods. We must eliminate the tax break they are getting."

The shift marks a stark contrast to November, when Abbott appeared alongside Google's CEO in Midlothian to celebrate the company's announcement of two new data centers in Haskell and Armstrong counties. At that time, he declared: "Google is now going to have a larger AI data center footprint, more so than any other state and as I understand it, more than any other country in the entire world. Texas will be the centerpiece for AI data centers for Google in the entire world."

The governor's reversal reflects mounting public concern. A June poll by the University of Texas Politics Project found that 56% of Texans oppose data center construction in their communities, while only 29% support it. Rural residents have emerged as particularly vocal opponents, expressing concerns about heavy water and electricity consumption. Town councils in Fort Worth and Wilmer have seen packed meetings with residents voicing opposition.

Rice University political analyst Mark Jones explained the dynamic: "Texans actually like the benefits of data centers in terms of ChatGPT and their ability to do things online. On the other hand, it is a not-in-my-backyard situation where they don't want a data center very close to them. As you get into rural areas, what is meant by close becomes essentially a broader definition and people are increasingly worried about data centers using water, using electricity, and creating noise without providing much in the way of jobs."

Jones anticipates that Abbott will push the state legislature next year to pass new laws granting counties greater authority over data center contracts.