The $3 Trillion AI boom’s “home” could be said to be Texas, with the state set to overtake Northern Virginia as the world’s largest data center market by 2030, with 6.5 GW of capacity currently under construction.
But, according to yesterday’s Texas Tribune, a “majority” of Texans are now opposed to data centers in their communities, a sentiment that is capturing the attention of the Republican Party of Texas. During a Legislative Priorities Committee in Houston, delegates to the party’s biennial statewide convention made AI and data center regulation part of its top-15 priorities for the 2027 Legislature.
Even Governor Greg Abbott, a staunch champion for data center development, agrees that more regulation is needed, which he backed up with a call for ERCOT and PUC to implement stricter regulations to protect local resources.
Will the backlash, especially in rural Texas, have a significant impact? The Data Center Coalition is actively defending the economic benefits of data center projects, and data center operators and tech partners are doing more to bring their own power and recirculate water in cooling systems. As grassroots movements drive state mandates for energy and water regulations, the industry will continue to accelerate its water mitigation, BYOP and BTM strategies.
For now, Texas boasts what other states can’t – huge tracts of land, abundant natural gas, and a still-welcoming economic development environment.

Susana Schwartz
Technology Editor
RCRTech
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