When it comes to Texas data centers, tech insiders’ concerns aren’t entirely unfounded. Experts tell WIRED that the change in direction could translate into concrete changes in the industry, although with limits.
Even though Democrats will control the Texas House of Representatives, Republicans will still control the state Senate. Robert Paterson, a professor of land use and environmental planning at the University of Texas at Austin, told WIRED that the split means some immediate attempts at change “will probably be thwarted a little bit.”
Adrian Shelley, office director of the nonprofit consumer advocacy group Public Citizen’s Texas, told WIRED that the Legislature would likely be a place to craft high-impact policies such as reallocating state agency resources. However, he adds that the governor could make more immediate changes by issuing executive orders or calling for the resignation of politically appointed officials at state agencies.
Shelley says these oversight agencies, such as the Texas Commission on Environmental Quality, the Public Utilities Commission and the Texas Water Development Board, have the authority to impose fines for violations of state law or, in extreme cases, revoke permits for projects such as data centers. But Paterson notes that Texas developers have particularly strong “grandfather rights,” which protect the terms of their projects from the moment their permits are approved, even if construction has not begun.
Another medium-term path to reshaping Texas’ data center industry could involve giving more power to its counties. Paterson noted that nearly half of the state’s data centers are on unincorporated land, putting them outside the jurisdiction of urban zoning laws.
Unlike other states, Paterson says, Texas counties have relatively limited enforcement capabilities. Under the so-called Dillon Rule, counties only have powers “specifically assigned by the State.” So while they have authority over things like access and egress from county roads or construction in flood plains, he says they don’t have the zoning authority that would help closely regulate projects like data centers.
Paterson says the new attorney general could theoretically adjust the terms of the state’s biannual manual, which establishes the limits of county authority. He also argues that even in a divided legislature, especially as anti-data center sentiment crosses party lines, state lawmakers could propose a workable bill giving counties “limited zoning authority over data centers.”
Shelley told WIRED that since “data centers have been a deciding factor in this blue wave,” the upcoming legislative season will be “very interesting.”
“I will say that the data center industry hasn’t shown much interest in working with state legislators or local leaders,” says Shelley, “and I’ll be curious to see if that changes.”
Otherwise, there is still low Earth orbit.
Gn bussni
