Data center enthusiasm plummets further
Wednesday, Jul 1, 2026 - Posted by Rich Miller
* Texas Tribune…
Gov. Greg Abbott called for blocking new data center development in rural parts of the state during a campaign stop in East Texas on Tuesday.
“We must prohibit them from building AI data centers in rural Texas neighborhoods,” Abbott said at the Bullard event, which primarily discussed his plan to cut property taxes, adding that this issue “dovetails right into fighting for East Texas values.”
Abbott’s push for a prohibition in rural neighborhoods appears to go further than a sweeping regulatory framework he unveiled earlier this month, which called for data centers to add new power generation to the grid, pay for their own infrastructure costs, reuse their own water and implement measures such as setbacks, among other proposals aimed at limiting their impact on residential communities. […]
A Texas Tribune analysis earlier this month found that nearly half of planned data centers in the state are set to be built in unincorporated areas not governed by cities or towns, up from 12% now.
Public polling has shown that data centers are extremely unpopular amongst all Texans and especially those living in rural areas, nearly two-thirds of which opposed construction of the facilities in their community, according to a recent University of Texas/Texas Politics Project poll.
* Abbott quote…
“I made clear already: Any AI data center even thinking about coming here — they got to bring their own money, bring their own power, reuse their own water and do it in a way that reduces the cost of electricity for residents across our state,” he said. “We must eliminate the tax break they are getting. They must be responsible for funding their own projects here in Texas. We will get that done.”
Abbott’s flip-flop on this topic leads me to believe that someday in the not too distant future the argument “If we don’t allow data center developers to build whatever and however they want here, then they will just go somewhere else,” will stop being so effective.
That day isn’t here yet, but the pitchforks are definitely out.
* Illinois Times had a very good explainer on this topic the other day…
Enter businesses such as CyrusOne, a company that has built data centers for the better part of the 2000s, including dozens already operating across the globe. Now, it is securing deals to build out data centers that are dozens of times bigger than the company used to build, including a roughly $2 billion, 1,200-acre site for the U.S. Army in Utah announced this spring, as AI models demand far more servers than traditional cloud computing. […]
The two-page [data center] ordinance, Chapter 17.39 of Sangamon County Code, was quietly introduced last spring and passed the County Board without issue in July 2025. It offers fairly simple regulations for a complex industry. The code is much more limited than other zoning codes – more than 10 times shorter than those governing solar and wind projects – and even several hundred words shorter than the county’s public comment code.
Go read the whole thing.
- Dirty Red - Wednesday, Jul 1, 26 @ 11:35 am:
Texas doesn’t make sense for data centers beyond executive compensation and real property taxes. Their power grid and long-term forecast for groundwater availability is more bleak than ours, unless they have found a way to squeeze more water out of rock or efficiently desalinate the Gulf.
- Joseph M - Wednesday, Jul 1, 26 @ 12:00 pm:
On the topic of “red states in the South growing increasingly combative against data centers,” I’ll highlight the reporting that Sam Karlin has done out of Louisiana in case you haven’t seen it yet:
“Entergy wants to charge customers $8 a month to buy a gas plant. Should Meta pay instead?”
‘Consultant for state regulator says plant mostly needed to power Meta data center, Meta calls it ‘inaccurate’’
https://archive.is/sShTd
Followed by:
“Gov. Jeff Landry plans executive order amid concerns over Entergy proposal for power plant”
https://archive.is/Z9fdG
- Juvenal - Wednesday, Jul 1, 26 @ 12:06 pm:
The problem with the “then they will just go somewhere else” argument is four-fold.
First, NIMBYism isn’t rational, and the “If we don’t raise global temperatures and deplete fresh water in Will County, we’ll just do it in Stephenson County” requires people to take a rational, big picture framework.
Secondly, the impact of data centers is definitely concentrated locally. I saw a report that one mega-project is expected to raise local temps by as much as five degrees in the valley where the project is planned. Local water shortages are a real threat. So is noise pollution from the constant hum.
Third, there is for many in this case a moral responsibility when it comes to stewarding the planet. I have no moral responsibility for data centers half way across the country, but I do have a moral responsibility to stop them in my community.
Finally, I think we’re seeing in the absence of any unified response by Democrats, a very real, grassroots, and effective action by progressives in response to the Trump administration. The collective response to ICE was essentially NIMBYism: “ICE out of Chicago” signs were everywhere, and local neighbors responded to ICE neighborhood by neighborhood, a model that worked in California, Minnesota, Oregon and elsewhere.
NIMBYism can defeat data centers provided its NIMBYism everywhere, and no one seems to want a data center in their community.
Personally I think we’ll get to a point where the data centers go to the feds and try to get protection from state and local regulation, claiming Interstate Commerce and National Security.
Good luck with that.
Again: no one wants a data center next door. Also, once they are built, they provide almost no jobs.
- BE - Wednesday, Jul 1, 26 @ 12:19 pm:
‘East Texas values’, huh? *looks at what’s in East TX vs West TX*
Someone should ask him if he also is against data centers being placed in urban areas too, like the one in Memphis that is making the poor around it sick, just to check.
- Rich Miller - Wednesday, Jul 1, 26 @ 12:24 pm:
===like the one in Memphis===
What does Tennessee have to do with the Texas governor?
- JS Mill - Wednesday, Jul 1, 26 @ 12:48 pm:
=in rural Texas neighborhoods,=
Uhh, the terms seem to be mutually exclusive Greg.
The water issue is different in different places. As @Juvenal posted, West Texas would seemingly be a bad place for water and the grid. DeKalb Illinois would seem less problematic. That is until Com Ed issued an electric conservation requests demand in northern Illinois being at a “critical level”. So the grid seems to be a serious issue and guess who is likely going to get the short end of that stick. Hint- not the data centers. The idea that data centers would have to provide power generation seems like a good idea. Admittedly, I have no idea what the unintended consequences of that actually are though.
Also, the com ed request today honks me off to no end given I can see the Byron Plant from my office.
- NoMoreMC - Wednesday, Jul 1, 26 @ 1:50 pm:
Saw this article this morning. Interesting idea out of the Illinois State Geological Survey/Prairie Research Institue to use deep, generally nonpotable, aquifers to cool data centers. The deep aquifers are natural heat sinks so less energy is required for cooling. It’s nonpotable, usually saline water, so it would keep data centers away from drinking water. Illinois has already been using these deep aquifers to store natural gas since the 50s, so the knowledge base and technology is already here to drill the wells and manage the aquifers. These are also the zones that have been proposed for carbon sequestration projects. It’s nice to see ISGS/PRI thinking outside the box. They have a lot of expertise related to underground natural gas storage and carbon sequestration, so it’s not surprising they thought of this possible solution.
https://tinyurl.com/mrya839n
- btowntruth from forgottonia - Wednesday, Jul 1, 26 @ 1:59 pm:
I think the Hades Weather Service just issued frost warnings for all nine circles.
I agree with Abbott on something.
- James the Intolerant - Wednesday, Jul 1, 26 @ 2:59 pm:
Texas has 290 operational data centers, there are approximately 4,500 operational nationally. Steps need to be taken now, but there will already be power and water issues from those operating now.