Story perspectives

Abbott Pauses Texas Data Center Approvals, $3.3 B Tax Loss

8/4/2026

Summary

Abbott Halts Datacenters

Governor Greg Abbott halted approval of Texas data centers pending an audit of power, water and tax incentives.
On July 27, the Texas Senate Finance Committee said the exemptions could cost $3.3 billion in forgone taxes for the 2028-29 budget, while House Bill 1223 now costs billions after rising from a $15 million fiscal note.
As of July 2026, 138 data centers were certified for the exemption and five applications remained pending.

Summary

Sid Miller Urges

A June 24 poll found 56 % of Texas voters oppose data centers in their communities, with 42 % strongly opposed.
San Marcos banned data centers on June 16; Hill County’s $100 million moratorium and Hood County’s ban were withdrawn.
Agriculture Commissioner Sid Miller urged a July 24 special session, saying water loss threatens Texas agriculture and rural life.
Lt. Gov. Dan Patrick and Sen. Charles Schwertner asked the Public Utility Commission to pause a $33 billion transmission build-out.

History

Historical Context

Texas’s 2021 cold-snap rolling blackouts, which left up to 3.2 million customers without power, highlighted the grid’s vulnerability. Today, Governor Greg Abbott and Lt. Gov. Dan Patrick are reviewing major data-center projects and lost tax revenue, echoing past efforts to balance statewide energy reliability with broader long-term future state economic growth.

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Abbott Halts Datacenters

Governor Greg Abbott halted approval of Texas data centers pending an audit of power, water and tax incentives.
On July 27, the Texas Senate Finance Committee said the exemptions could cost $3.3 billion in forgone taxes for the 2028-29 budget, while House Bill 1223 now costs billions after rising from a $15 million fiscal note.
As of July 2026, 138 data centers were certified for the exemption and five applications remained pending.

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