ACT policy recommendations on data centers

Data centers are expanding across Texas at a breakneck pace, straining our power grid, draining scarce water supplies, and threatening the health and quality of life of nearby communities, often with little public input or oversight. Texans are counting on the Legislature to act before the damage is done, not after.

We call on Governor Abbott to convene a special session of the Texas Legislature to address the impacts of data center development, including consideration of a moratorium on new large-scale data center permitting until common-sense safeguards are in place.

At a minimum, any legislative package should include:

  1. Eliminating the sales tax exemption for data center equipment and construction.

  2. Mandatory reporting requirements for water and energy use, so regulators and the public know the true footprint of these facilities.

  3. Requiring use of non-potable water for cooling and operations wherever feasible.

  4. Establishing fees on data centers that are assessed proportional to the industry’s impact on local and state water, energy, air, land and other resources. These fees could pay into water supply, energy and water infrastructure, distributed energy, and flood mitigation funds across various state agencies. 

  5. Requiring Energy Star certified servers to reduce energy waste.

  6. Establishing noise limits at the property line that protect human and livestock health and allow for normal enjoyment of adjacent properties. 

  7. Strong air quality standards for on-site power generation and backup generators.

  8. Stronger county land use authority, including the power to exclude data centers and regulate stormwater mitigation, impervious cover limits, building codes, watershed protection ordinances, drainage fees, incompatible land use, and noise pollution limits that account for infrasound.

  9. Minimum setbacks from homes, schools, healthcare facilities, and other existing businesses (excluding other data centers).

Texas shouldn’t sacrifice the health and water that our communities depend on for any industry. We urge the Governor and Legislature to act now.