Texas Governor Greg Abbott Bars AI Data Centers in Rural Neighborhoods

Governor Greg Abbott announced a ban on new AI data center development in rural Texas neighborhoods during a campaign stop in East Texas. He said, “We must prohibit them from building AI data centers in rural Texas neighborhoods,” and outlined that any such facilities must bring their own power, reuse water, fund their own infrastructure and forfeit tax breaks.

The proposal expands a regulatory framework released earlier in the month that requires data centers to add new power generation, meet water‑reuse standards and observe setbacks to limit impact on residents. Abbott, who has promoted Texas as an AI hub after a $40 billion Google investment, has faced criticism from rural communities concerned about water use, air quality and higher electricity costs. The industry trade group argues the centers provide tax revenue and essential digital services, while polls show two‑thirds of Texans oppose the projects in their communities.