As Texans question the growth of data centers, Commissioner Sid Miller lays out plan for statewide moratorium and Study

AUSTIN – Texas Agriculture Commissioner Sid Miller today announced the release of a new statewide op-ed calling for a temporary moratorium on new hyperscale data center development in Texas until lawmakers and regulators can fully assess the long-term impacts on the state’s electric grid, water supplies, agricultural land, and rural communities.

    The op-ed argues that while Texas should continue leading technological innovation and artificial intelligence, state leaders must ensure unchecked expansion does not come at the expense of farmers, ranchers, small towns, and critical infrastructure.

     “Texas has always welcomed growth, but there’s a difference between smart growth and reckless expansion,” Commissioner Miller said. “Right now, massive hyperscale data centers are gobbling up productive farmland, straining our electric grid, consuming enormous amounts of water during drought conditions, and cashing in on taxpayer-backed incentives while rural Texans are left footing the bill. Texans are demanding a serious pause and an honest conversation before we permanently reshape our state.”

     Miller also said Governor Greg Abbott has the authority to step in and protect the long-term interests of the state before the situation worsens.

     “The Governor has exercised executive authority before when he believed Texas families, businesses, or critical infrastructure were at risk,” Miller said. “This issue deserves that same level of urgency. Governor Abbott has the ability to take immediate action to protect the future of Texas, safeguard our electric grid and water supply, and ensure that Texas agriculture and rural communities are not sacrificed in a race to subsidize every Silicon Valley project looking for cheap land and cheap power.”

     Commissioner Miller pointed to the wide range of taxpayer-funded incentives and subsidies currently fueling the rapid expansion of data centers across Texas, including sales tax exemptions on data center equipment and electricity purchases, local property tax abatements, economic development grants, discounted infrastructure arrangements, and publicly supported utility expansion projects designed to accommodate hyperscale developments.

     “These corporations are not coming to Texas solely because they love our values,” Miller said. “They’re coming because Texas taxpayers and local communities are offering billions in incentives, tax breaks, infrastructure upgrades, and sweetheart deals. Meanwhile, everyday Texans are dealing with rising housing costs, grid instability concerns, and increasing pressure on water supplies. We shouldn’t prioritize giant tech companies over working Texans.”

     The op-ed highlights growing concerns from communities in Texas and across the country over the impacts of hyperscale data centers on water usage, noise, land conversion, and energy reliability. Commissioner Miller noted that some facilities consume enough electricity to power entire towns while requiring millions of gallons of water annually for cooling operations.

     Miller also emphasized the importance of protecting Texas food and agriculture, which generates approximately $900 billion in economic output annually and remains foundational to the state’s economy and national food security.

     “Our farmers and ranchers have survived droughts, freezes, floods, and market volatility to build the greatest agricultural economy in America,” Miller said. “We cannot allow productive farmland and scarce natural resources to be sacrificed without understanding the long-term consequences. Growth without vision is not leadership.”

     The Commissioner’s proposal calls for:

•A temporary moratorium on new hyperscale data center projects

•Independent studies on grid reliability and water consumption

•Greater transparency surrounding tax incentives and public subsidies

•Stronger protections for productive agricultural land

•A statewide framework balancing economic development with resource conservation

    Miller stressed that the proposal is not anti-technology or anti-business, but rather a call for responsible planning that protects Texas families and communities for generations to come: “Texans demand balance: a data center policy that safeguards our resources, economy, and way of life. A temporary moratorium is not anti-progress. It is pro-Texas.”

     To read Commissioner Miller’s op-ed in full, visit https://texasagriculture.gov/News-Events/Article/11923/Opinion-For-the-Future-of-Texas-Pause-Data-Centers