Texas’ data center industry could face meaningful changes after a shift in political leadership, but experts told WIRED that divided state government, limited county authority and developers’ existing legal protections could constrain how quickly policy changes take effect.
Political change may have limited immediate impact
Although Democrats control the Texas House of Representatives, Republicans still control the state Senate. That split could make immediate efforts to change data center policy more difficult, Robert Patterson, a professor of land use and environmental planning at the University of Texas at Austin, told WIRED.
Adrienne Shelley, director of the Texas office of the nonprofit consumer advocacy group Public Citizen, said Congress will likely be responsible for major policies, including decisions about reallocating state government resources. The governor, however, could take more immediate action by issuing an executive order or requiring politically appointed government officials to resign.
State agencies already have enforcement powers
Oversight agencies including the Texas Environmental Commission, the Public Utilities Commission and the Texas Water Development Board can impose fines for violations of state law. In extreme cases, they can also revoke permits for projects such as data centers, Shelley said.
Those powers may be limited by Texas developers’ particularly strong “vested interests”, Patterson said. Project conditions can be protected from the moment a permit is approved, even if construction has not started.
Counties could gain more authority over data centers
A medium-term approach to reshaping Texas’ data center industry could involve giving counties greater authority. Patterson noted that almost half of the state’s data centers are located in unincorporated areas outside the reach of local zoning laws.
Compared with counties in other states, Texas counties have relatively limited powers, Patterson said. Under the state’s so-called Dillon Rule, counties may exercise only powers “specifically assigned by the state.” Counties can regulate issues such as access to county roads and construction in flood plains, but they generally lack the zoning authority needed to tightly regulate data center projects.
The new attorney general could theoretically change the terms of the state’s biannual handbook, which defines the limits of county authority, Patterson said. He also argued that the state Legislature could pass legislation granting counties “limited zoning authority over data centers,” particularly because opposition to the facilities cuts across party lines.
Legislative session could test the industry’s approach
Shelley told WIRED that the upcoming legislative session will be “very interesting” because “data centers were a critical factor in this blue wave.”
“I don’t think the data center industry has shown much interest in working with state legislatures or local leaders, and I’m interested to see if that changes,” Shelley said.
If it does not, there will always be low Earth orbit.
Source: www.wired.com