Texas Governor Proposes Comprehensive Data Center Regulations to Address Infrastructure Strain
Governor Greg Abbott of Texas has proposed a series of regulatory measures aimed at managing the rapid growth of data centers in the state. These recommendations are intended for the Texas Legislature to consider in the 2027 session. The proposals include requiring new data centers to contribute to the state's power grid, pay for their own grid interconnection and infrastructure costs, and use closed-loop water systems. Additionally, data centers would be required to report annually on their electricity and water usage. Abbott also suggested repealing sales tax exemptions for data centers, which could save the state an estimated $3.2 billion in revenue over the next two years. The governor's proposals come amid concerns about the impact of data centers on local resources and infrastructure, particularly in rural areas where zoning restrictions are minimal. 
