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Data centers’ rapid rise across Central Texas poses a problem for county officials: The facilities can significantly impact water, energy, infrastructure and surrounding communities, but counties have limited authority over where and how they are built.
Unlike cities, Texas counties generally lack broad zoning authority over development in unincorporated areas. Counties can exercise only powers granted by the Texas Constitution or state statute, and that leaves county officials with limited tools to address the data centers converging on rural areas.
The challenge is becoming more pronounced as the industry targets new areas. A February analysis by the Pew Research Center found that 67% of planned U.S. data centers are in rural areas, compared with 13% of existing facilities. Nearly 4 in 10 planned data centers are in counties currently without one.
In February, Hays County commissioners considered a moratorium on new data-center development amid concerns about the facilities’ water demands. But county attorneys warned that a broad moratorium could expose the county to significant legal liabilities.
On June 23, the Hays County Commissioners Court adopted a resolution asking developers of industrial projects requiring significant amounts of water to provide additional information about anticipated water and electricity use. The county also directed its Development Services Department to request that information from data-center developers seeking approvals or permits. County officials told the Austin Free Press that since the resolution passed, it has not received any applications.
Travis County Commissioner Brigid Shea told the Austin Free Press that the scale of data-center development has exposed a gap between potential impacts and county authority.
“We are often responsible for infrastructure, emergency services and other public resources affected by development while lacking the authority to make many decisions associated with that development,” Shea said. “That puts counties in an impossible position.”
County officials say they want more authority to evaluate projects before they are built and to account for their effects on local resources and communities. They are calling for greater transparency from developers, including information about water and energy demands, as well as a meaningful role in the process for residents and local governments. Some are looking to the 2027 Texas legislative session for lawmakers to give counties tools to regulate large projects and tailor requirements to local conditions.
Shea said that counties are not seeking to prevent economic development.
The goal “should be to give communities and local governments the ability to understand what is being proposed, assess its impacts and ensure that development occurs in a way that is compatible with local needs and available infrastructure,” she said.
Data transparency
The recently proposed Cosmos redevelopment in Northwest Austin illustrates the questions surrounding large data centers. Travis County Commissioner Ann Howard said a community meeting about the project drew approximately 400 people. The site is near established neighborhoods, schools and wildlife habitat, she said, raising questions about how a large data center would fit in.
Howard said officials need to understand a project’s water demand, energy use, noise, emissions and infrastructure needs before deciding whether it is appropriate for a particular location. She said the impact of a data center can vary depending on where it is built and that local officials should have enough information to evaluate those differences.
“The public should also have access to meaningful information about those impacts early enough in the process for the community and local governments to identify potential concerns,” Shea said.
Howard said that data centers that put additional demands on a community’s water supply are of special concern. In some places, she said, the amount of available water should determine whether a project moves forward at all.
“You cannot keep squeezing blood from a turnip,” she said.
State efforts to collect that information have exposed these data gaps. During a June legislative hearing, lawmakers were told that only 17% of data centers responded to the Texas Water Development Board‘s 2025 annual water-use survey.
Gov. Greg Abbott has since directed the Public Utility Commission of Texas and the Electric Reliability Council of Texas to pause approvals of new data centers as the state audits their water and power needs. The scope of the pause for projects already approved or under construction remains unclear.
Rural advocates say that the state’s water-planning process needs more time to plan for the industry’s growing demands.
“Our rural Texas citizens are very reasonable people, but they are tired of what you’re doing to them,“ Jet Parker, co-founder of Save Rural Texas, said at a Sept. 28 Capitol press conference announcing We the People Texas. That new statewide coalition focuses on transparency and protecting Texas water. “They want time for water planning to catch up with usage,” Parker said.
Asking for legislative help
The issue has prompted county officials from across Texas to seek legislative changes.
Ben Zeller, the Victoria County judge and legislative chair of the County Judges and Commissioners Association of Texas, told the Texas House Committee on Natural Resources in June to give counties additional tools for addressing large industrial projects such as data centers.
Zeller identified three areas where he wants counties to have more authority: reasonable buffer zones and noise-mitigation standards for large facilities near homes, schools, neighborhoods and agricultural operations; authority to require certified water-impact statements and environmental safety plans for large industrial users; and mandatory public hearings for projects above a defined megawatt threshold.
“Collectively, each of the reasonable measures we’re asking the Legislature to consider would give local communities better tools to address the challenges that come with large-scale industrial development,” Zeller told the Austin Free Press.
“Texas is home to 254 unique counties, from those with populations of a few hundred to some of the largest urban centers in the nation,” Zeller said. “A one-size-fits-all approach from the state level doesn’t account for the reality that counties need the ability to solve local problems in the best ways for local residents.”
Hays County is looking to the 2027 legislative session for broader authority. The county wants localized powers to protect surface and groundwater resources and regulate the impacts of water-intensive industrial projects on water availability and infrastructure. Officials there also support setting statewide standards for water-efficient cooling, reclaimed or non-potable water and demand responses for the electrical grid.
Bastrop County is also considering seeking additional legislative authority. A county spokesperson said the Commissioners Court has discussed seeking authority for additional tools to address development in environmentally sensitive and rural areas (under Texas Local Government Code Chapter 231).
The court’s draft resolution seeks greater authority to manage large-scale industrial development in the Lost Pines, Colorado River and Cedar Creek runoff areas.
Giving counties more authority would not necessarily mean each county would address data-center development in isolation. Resources such as aquifers can cross county boundaries, creating another reason for local governments to share information as they evaluate projects.
“A coordinated approach could help counties identify common concerns, share information and develop consistent approaches,” Shea said.
Travis County officials are looking at what can be done under existing law. Shea said the county is drafting possible County Code revisions to address large-scale developments.
“We are looking carefully at every tool available to us and how we can use our limited authority as effectively as possible,” she said. “But it is important to be candid that even what the county may be able to do will remain quite limited without broader statutory authority.”
Shelby Ligon is the government reporter for the Austin Free Press.
Austin Free Press reporter Piper Guinn contributed to this report.
Support for the Austin Free Press’ reporting on government accountability and watchdog reporting comes from the Cynthia and George Mitchell Foundation. Sponsors do not influence AFP’s editorial decisions.
