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Texas · Data centers3 min read

Texas voters of every party turn against data centers

A August poll found 57 percent of Texans oppose new data centers, and the fight is shaping races for governor and Senate. Power bills and water are at the center.

By the Dashline deskSource: The Verge
Texas voters of every party turn against data centers
Photo: The Verge

Voters in Texas, across party lines, are turning against data centers. An August poll found 57 percent of Texans oppose building them. That includes 43 percent of Republicans, 75 percent of Democrats and 54 percent of independents. Data centers are large buildings full of computers that power online services and AI. Texas is where they are growing fastest.

What changed

Local fights are spreading around Austin. In Taylor, residents are pushing back on a data center planned for a site that was supposed to be a park. In Temple, the mayor and City Council members face recall attempts over data center projects. San Marcos became the first city in Texas to ban data centers.

A new coalition called We the People Texas now links dozens of groups across the political spectrum. Texas NAACP president Gary Bledsoe estimates it represents as many as 1 million voters. Its aim is to stop, or at least slow, construction.

Why people are upset

  • Water use in a state that is already dry
  • Tax breaks for data center companies
  • New gas plants, wind farms and power lines built to meet demand
  • Higher electricity bills

The numbers help explain the anger. Texas electricity bills have grown by 35.4 percent on average over the past five years. The state's largest grid operator estimates data center power demand could rise nearly tenfold by 2030. Data centers in Texas used about 25 billion gallons of water last year, or around 0.4 percent of the state's total, according to the Houston Advanced Research Center. It estimates that could reach up to 2.7 percent by 2030.

The tax break behind the boom

Texas passed a sales tax exemption for data centers in 2013. In 2015, Gov. Greg Abbott expanded it to cover very large data centers. Qualifying developers can skip state taxes on equipment and electricity for up to 20 years. The break was first expected to cost $14.6 million in 2014 and 2015. In 2025, state officials estimated it would mean $3.2 billion in lost sales tax revenue over two years.

Politics and what comes next

Abbott once called Texas the epicenter of AI development. He now faces a tight reelection race against Democrat Gina Hinojosa. In the Senate race, Republican Ken Paxton is running neck and neck with Democrat James Talarico. Candidates in both parties are trying to distance themselves from the industry, and so far voters are not buying it, according to the report.

Jet Parker, cofounder of Save Rural Texas, warns Republicans they could lose Texas if they keep backing data centers. Her group helped delay one project near the Oklahoma border. How the issue shapes the election results is not yet known.

The takeaway

Data center fights are now a voting issue in Texas, and they tie into power bills and water use that can reach people far beyond the state.

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