Story perspectives

Texas Gov. Abbott Targets $3.2B Data-Center Tax Breaks

6/11/2026

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Summary

Story summary

Governor Greg Abbott proposed repealing data-center sales-tax exemptions that could cost $3.2 billion.
He ordered data centers to fund electric infrastructure and use water-efficient cooling.
He directed the Public Utility Commission and the Electric Reliability Council of Texas (ERCOT) to protect ratepayers, setting July 17 for agency reports and July 31 for ERCOT to cut transmission costs.
Community groups in Archer County and San Angelo oppose data-center projects over water use and noise.

History

Historical Context

The Texas Enterprise Fund, launched by the Legislature in 2003 with $295 million, has attracted up to $6.3 billion in out-of-state investment and created more than 63,000 jobs. Abbott’s July 2024 proposal to end data-center tax breaks revives the same supply-side incentive model that spurred the state’s earlier growth, risking the loss of that investment edge.

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Story summary

Governor Greg Abbott proposed repealing data-center sales-tax exemptions that could cost $3.2 billion.
He ordered data centers to fund electric infrastructure and use water-efficient cooling.
He directed the Public Utility Commission and the Electric Reliability Council of Texas (ERCOT) to protect ratepayers, setting July 17 for agency reports and July 31 for ERCOT to cut transmission costs.
Community groups in Archer County and San Angelo oppose data-center projects over water use and noise.

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