TEXAS — Governor Greg Abbott announced Tuesday (6/30) for a prohibition on new artificial intelligence data centers in rural Texas neighborhoods, marking his strongest public statement yet on the rapid expansion of the industry across the state.
Speaking at a campaign event in Bullard, Abbott said, “We must prohibit them from building AI data centers in rural Texas neighborhoods,” citing growing concerns about the impact these facilities can have on nearby communities.
Abbott also reiterated several proposals he has recently called for, including requiring future data centers to provide their own power generation, reuse their own water, pay for new infrastructure without shifting costs to ratepayers, reduce impacts on neighboring properties, and eliminate certain state tax incentives.
The governor’s latest comments could draw additional attention in Wharton County, where Amazon Web Services (AWS) is developing its proposed Project Eagle data center campus near Boling.
Current publicly available construction filings for the Boling project show four planned data center buildings as part of the initial phase. The broader property covers approximately 2,700 acres, leaving significant acreage available for potential future expansion. While earlier conceptual plans discussed a larger multi-phase campus, AWS has not publicly announced a final buildout beyond the four buildings currently reflected in public filings.
The proposed campus has been the subject of local discussion over groundwater use, electrical infrastructure, and the long-term impact the project could have on the surrounding rural community. Recent permitting discussions have also included questions about water supply and future infrastructure needed to support the development.
At this time, Abbott’s comments do not stop the proposed Boling project, and no executive order or state law has been issued prohibiting projects already under development. It also remains unclear whether any future legislation would apply to projects that have already begun the permitting and construction process.
As the Texas Legislature prepares for its next session, data center development is expected to remain a major issue as state leaders debate how to balance economic growth with the concerns of rural communities across Texas.