The Next Texas Gold Rush: Data Centers and Their Impacts

Texas is poised to be the leading state in the U.S. for data centers. 

This explosion of development and investment amid the AI boom is reshaping the state at a rapid clip. More than 140 data centers are already under construction, with many other proposals waiting in the wings as the state grapples with its own water and energy resources crises. 

Money is already pouring into Texas political campaigns to protect the industry's future here. The state’s aversion to government regulation makes Texas an increasingly attractive location. Data centers promise economic prosperity, but are also enjoying incentives that waive both their state sales taxes and oftentimes, their local property taxes. Texas is losing out on more than $1 billion a year in state revenue because it offers one of the most generous sales tax exemptions of its kind in the nation. 

In this reporting project, The Texas Tribune examines the political tensions and influences behind the data center boom, the environmental and economic stakes, and explore how local and state government officials are navigating the rapid proliferation of data centers, which are both incredibly lucrative but deeply unpopular with locals.

Photo caption: An attendee wears a sticker opposing the data centers proposed to be built in Hood County, Texas, during a County Commissioners Court meeting in Granbury on February 23, 2026. Image by Shelby Tauber/Texas Tribune.