Texas Governor Abbott opposes rural data center expansion, rejecting proposed facilities on environmental and grid reliability grounds.

Governor Greg Abbott this week called for a ban on building new artificial intelligence data centers in rural areas and additional regulations during a campaign stop in East Texas on July 7.

"We must prohibit them from building AI data centers in rural Texas neighborhoods," Abbott said, according to a statement from his office. "Data centers dovetail right into fighting for East Texas values."

Opposition to such facilities is mounting as they require substantial amounts of electricity and water and generate significant noise. While Abbott previously marketed Texas as "the epicenter of AI development," sentiment in rural regions has begun to shift.

A recent poll by the University of Texas at Austin found that 62% of rural Texans—a heavily Republican demographic—support restrictions on data center development, according to the governor's release.

Seven counties—Hays, Caldwell, Henderson, Hill, Hood, Somervell, and Van Zandt—have called for either a special legislative session or for data center regulation to be designated as a top priority during the regular session scheduled for January.

Abbott outlined specific requirements for any facilities that proceed. "Any AI data center even thinking about coming here—they've 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, adding that the state must "eliminate the tax break they are getting" and ensure operators fund their own projects without taxpayer support.

The scale of potential development is substantial. More than 480 large data centers have requested permission to connect to the ERCOT grid—which operates most of Texas's power infrastructure—through 2032, according to the Electric Reliability Council of Texas.

Abbott formalized his position in a June 10 letter directing the state's Public Utility Commission to ensure data-center development "does not come at the cost of Texans and our local communities." He requested the agency minimize adverse impacts on local populations and ensure that data-center operators bear full responsibility for project costs.