Abbott pushes ban on AI data centers in rural Texas neighborhoods

Texas Gov. Greg Abbott escalated his stance on data-center development, saying AI facilities should be barred from rural neighborhoods and stripped of state tax incentives. At a campaign rally near Tyler, Abbott said developers must finance their own power and water and lower electricity costs for residents, reflecting bipartisan unease over strain on the grid and local resources. He urged lawmakers to codify new restrictions and revoke sales-tax breaks next session; state data show roughly $2.8 billion in exemptions since 2014, with incentives projected to hit $3.2 billion over the next two years. Democratic challenger Gina Hinojosa criticized Abbott for fostering what she called a giveaway to wealthy donors, underscoring how AI infrastructure has become a flashpoint in Texas politics and economic development.

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