Governors Address Data Center Expansion Amid Public Backlash in Key States
Governors in several U.S. states are adjusting their stances on data center development as public opposition grows, particularly in the lead-up to midterm elections. Pennsylvania Governor Josh Shapiro announced new, stricter standards for data center projects, requiring them to pay full electricity costs, demonstrate advanced water conservation, and secure local approval before state permits or tax exemptions are granted. He criticized "predatory developers" for attempting to push through numerous projects without adequate financing or community consent. Similarly, Texas Governor Greg Abbott, who previously supported data center recruitment, has now ordered regulators to ensure Texans are not burdened with higher electricity bills due to these facilities and is considering legislative changes to remove tax breaks. This shift reflects increasing discontent in rural areas over the environmental impact, energy consumption, and perceived threats to local character posed by large data centers.