Greg Abbott gave data centers over a billion dollars in tax breaks
The State of Texas under Greg Abbott's leadership awarded over $1 billion to data centers in 2025 as they contribute to the water crisis affecting different parts of the state.
Data centers are exploding across the Lone Star State and Texans are increasingly worried about their rapid expansion. Residents, farmers, and activists are concerned about the environmental and economic impacts of these data centers, including their water usage. Despite this mounting concern, Greg Abbott’s government continues to entice data centers to build in Texas.
In 2024, Texas tax breaks to data center companies totaled $148 million, while in 2025, that number ballooned to a whopping $1 billion. Residents across the state are now questioning why these massive companies are getting tax relief from the state to destroy farmland, natural landscapes, and the water supply, while millions of Texans struggle to pay sales and property taxes. In addition to the environmental impacts, these data centers have also caused utility prices to rise by 70% in some cases, passing the operating cost onto regular Texans while these companies reap the benefits.
In the face of this aggressive expansion, some Texas communities have taken matters into their own hands by passing their own data center bans. Hill County, which is located southwest of Dallas, recently voted to ban data centers for one year. The county court of commissioners voted 3-2 for the ban, and a spokesperson for the county says they expect lawsuits from data center companies but remain steadfast in their decision.
Other Texas communities like Hays County have also proposed temporary bans, but nothing has been decided quite yet. The momentum on this issue is clearly on the side of residents, farmers, and activists, but these data center companies have massive pools of revenue to wage legal fights for years to come. It’s going to take bold action from the Texas Legislature to settle this issue once and for all, but there’s always a possibility that the “business friendly” Texas Republicans, including Gov. Abbott, oppose such measures.
Texas Democrats, including Agricultural Commissioner candidate Clayton Tucker have seized on this contentious issue and made it a central pillar of his campaign. Tucker has an entire page on his campaign’s website dedicated to this issue, hoping it will energize Texas voters to back Democrats in these crucial statewide races. Texas Democratic gubernatorial candidate Gina Hinojosa has also made data centers a central talking point out on the campaign trail, showing just how seriously Democrats are taking this issue.
Despite this political momentum, only time will tell if Texas voters take these warnings seriously, or let Republicans like Greg Abbott continue to put private corporations over the needs of residents and farmers.