Texas data centers election fight puts AI projects in rural spotlight
Democrats are pressing Gov. Greg Abbott over AI data centers as rural Texas voters raise concerns about water, power bills and land use.
By Hana Yoshida · Markets Reporter
4 min read
Texas data centers election politics have moved quickly from a local land-use fight to a statewide issue in the governor’s race, according to the Associated Press. Democratic nominee Gina Hinojosa is attacking Republican Gov. Greg Abbott over AI server projects as some rural voters complain about water use, power costs, secrecy and loss of open space.
Hinojosa told a Democratic Party event in Amarillo that the issue had only recently become central to her campaign. She said data centers are owned by “the richest men in the world,” argued Texans are paying the costs and called the sector “the wild west of data centers,” the AP reported.
Why are Texas data centers becoming an election issue?
Data centers are large buildings packed with computer servers that support services such as artificial intelligence. They can require substantial electricity, water and land, which has made them a target for residents worried about utility bills, drought, noise, light pollution and changes to rural communities, according to the AP.
The issue has spread beyond city councils and county boards into statewide contests. In Ohio, Democratic Senate nominee Sherrod Brown has run an ad tying Republican Sen. John Husted to data centers, while activists seek a statewide vote to ban new construction, the AP reported.
In Wisconsin, Democratic governor candidate Francesca Hong is campaigning on stopping AI data centers. In Pennsylvania, Democratic Gov. Josh Shapiro has faced criticism from some rural voters who say his administration has been too open to large technology companies, according to the AP.
Why Texas is a major target
Texas is especially exposed to the fight because it has abundant land, ample energy resources and a permissive regulatory climate under Republican leadership. Commercial real estate firm JLL says Texas is on track to pass northern Virginia as the world’s largest data center market by 2030, according to the AP.
Large projects are already under construction in rural west Texas and the Panhandle, including one near Amarillo described by backers as the world’s largest. Some projects include plans for natural gas-fired turbines to supply power, the AP reported.
Google is building four data centers in northwest Texas and recently sponsored moderated discussions with officials and business leaders in Lubbock and Amarillo, according to the AP. Google says its spending supports American innovation, strengthens cybersecurity and adds energy capacity, while President Donald Trump has made data centers a priority in the U.S. race with China over AI.
Critics say developers and technology companies often keep plans private, leaving residents unsure what will be built or what pollution could result. Others told the AP that construction and incoming workers are raising rents, taking farmland, lighting the night sky, clogging roads and making parts of rural Texas feel industrial.
How Abbott and Democrats are responding
Opposition is not limited to Democrats. Texas Agriculture Commissioner Sid Miller, a Republican, is among critics, and former Republican activist Suzanne Bellsnyder told the AP that some Republicans are angry with Abbott, though she was unsure whether that would affect their votes.
Abbott has promoted major projects and joined Google’s November announcement of a $40 billion Texas investment, saying the state was “the epicenter of AI development,” according to the AP. Texas counties lack zoning authority, which limits a tool other communities have used to challenge data centers.
Abbott has recently ordered regulators to act so Texans do not pay higher electric bills because of data centers and said he will seek legislation next year to regulate the industry. At an East Texas campaign stop, he said he wants to remove a tax break worth more than $1 billion a year and stop data centers from being built in “rural Texas neighborhoods,” the AP reported.
Hinojosa called that wording vague and said as governor she would block a data center permit if the project was not a good deal for Texans or if residents had no say. Clayton Tucker, the Democratic nominee for state agriculture commissioner, told the AP that data centers dominate his campaign events with both Democrats and Republicans, calling it the most cross-partisan issue he has seen.
Water remains a central concern for ranchers and farmers. Giles Dalby, a west Texas cattle rancher and Republican county commissioner, told the AP the issue is “on everybody’s mind” and warned that data centers could compete with ranchers during shortages or rationing.
Republican-led protest groups have formed, including one in Lubbock. Founders Stephen Sanders and Hallie Bertrand told the AP they may not vote for Abbott, though they may not necessarily support Hinojosa.
This story draws on original reporting from Fortune.