Democrats will have control of the Texas House of Representatives, while Republicans retain control of the State Senate. According to experts interviewed by WIRED, this change could lead to concrete developments for the data center sector, but within narrow limits.
- Democrats will control the Texas House, while Republicans keep the State Senate.
- This split may slow immediate changes, but the legislature could still negotiate high-impact policies.
- Regulators can fine violators and revoke permits, but developers keep strong vested rights.
- Counties have limited powers, so lawmakers could grant them zoning authority over data centers.
Robert Paterson, a professor of land use and environmental planning at the University of Texas at Austin, believes this power distribution means some attempts at immediate change “will probably be slowed down a bit.” Adrian Shelley, director of the Texas office of Public Citizen, a nonprofit consumer advocacy organization, judges that the legislature would be the most likely place to negotiate high-impact policies, such as the reallocation of state agency resources. He adds, however, that the governor could achieve faster changes through executive order, or by requesting the resignation of politically appointed officials within agencies.
According to Adrian Shelley, several regulatory agencies, including the Texas Commission on Environmental Quality, the Public Utility Commission, and the Texas Water Development Board, can impose fines for violations of state law and, in extreme cases, revoke permits for projects like data centers. Paterson argues, however, that Texas developers benefit from particularly strong vested rights, which protect the conditions of their projects once permits are approved, even if construction has not begun.
Limited Powers for Counties
Another avenue, in the medium term, would be to increase the power of counties. Paterson notes that nearly half of the state’s data centers are located on unincorporated land, outside the jurisdiction of city planning rules. Unlike other states, Texas counties have relatively limited enforcement capabilities. Under the so-called Dillon’s Rule, they only possess powers “specifically granted by the state.” They thus have authority over issues like access to county roads or construction in floodplains, but not over zoning that would allow close regulation of projects like data centers.
Paterson believes the new attorney general could, in theory, modify the terms of the state’s biennial manual, which sets the limits of county authority. He also considers that, even in a divided legislature, state lawmakers could propose viable legislation granting counties “limited zoning power over data centers,” an issue where rejection crosses partisan lines.
An Expected Legislative Session
Adrian Shelley believes that, since data centers were “a decisive factor in this blue wave,” the next legislative session will be “very interesting.” He adds: “I must say the data center sector has not shown much interest in working with state lawmakers or local officials, and I will be curious to see if that changes.”
