POLICY · REGULATION · #2724
Texans coalesce against data centers as AI-driven growth fuels local backlash
A statewide coalition called We the People Texas, including the Texas NAACP and local grassroots groups, is mobilizing to block or slow hyperscale data center projects over concerns about water use, tax subsidies, and new power infrastructure; an August poll found 57% of Texans oppose building more data centers. State tax exemptions enacted in 2013 and expanded in 2015 helped spur rapid data center growth to support generative AI, and state officials estimate the breaks could cost billions in lost sales-tax revenue.
KEY POINTS
- A statewide coalition called We the People Texas, including the Texas NAACP and local grassroots groups, is mobilizing to block or slow hyperscale data center projects over concerns about water use, tax subsidies, and new power infrastructure; an August poll found 57% of Texans oppose building more data centers.
- State tax exemptions enacted in 2013 and expanded in 2015 helped spur rapid data center growth to support generative AI, and state officials estimate the breaks could cost billions in lost sales-tax revenue.
- The movement could reshape Texas politics, slow AI-driven infrastructure expansion, and affect state revenues and energy planning.
WHY IT MATTERS
The movement could reshape Texas politics, slow AI-driven infrastructure expansion, and affect state revenues and energy planning.