In the heart of Texas, a battle is brewing over the rapid expansion of data centerswith Caldwell County Judge Hoppy Haden leading the charge for local control. The 63-year-old judge, known for his cowboy hat and distinctive mustache, finds himself in a complex dance between state regulations and the concerns of his constituents.
The open fields of Caldwell County, nestled between Austin and San Antonio, are set to host at least four new data center projects. Among these, the Denver-based developer Tract is planning a massive 3,000-acre tech compound, drawn to the area for its access to the Permian Highway gas pipeline and nearby transmission lines. Additionally, New York-based data firm Edged is eyeing 330 acres near the county’s fracked gas plant for another significant development.
Balancing Act: Local Concerns and State Law
Haden’s frustration stems from the limited power counties have over these developments. “By the time I hear about it, [developers have] already bought their land, so it’s not like they’re asking our permission to show up,” Haden shared. This sentiment echoes the struggles of many rural Republican county officials across the state who find themselves with few tools to constrain these energy- and water-intensive projects.
The rapid proliferation of data centers in Texas is staggering, with over 400 proposed developments. These projects could quadruple electricity demand by 2032 and consume up to 161 billion gallons of water this year, according to the Houston Advanced Research Center. The environmental and infrastructural impacts are significant, including light and noise pollution, habitat loss, higher utility rates, and greenhouse gas emissions.
The Push for Legislative Change
In response to these challenges, Haden and other county officials are advocating for a middle ground. Following Hill County’s lead in passing a data center moratorium in May, Caldwell County commissioners unanimously approved a resolution calling on the state to grant counties greater land-use authorities. The resolution also demands independent environmental assessments and requires developers to disclose their energy, water, and infrastructure impacts before proceeding.
Haden is collaborating with state Representative Stan Gerdes and state Senator Judith Zaffirini to draft legislation that would empower counties to impose land-use requirements on data centers. This legislation aims to set limits on potable water use, stormwater use, and wastewater discharge, encouraging the use of more efficient closed-loop water cooling systems and “dark sky” lighting.
“This is not a property rights bill. I’m not asking for [developers] to be able to come or not to come. What I am asking is to be able to regulate our national natural resources if they arrive here,” Haden emphasized. Currently, counties can only impose such requirements as part of a development agreement that offers tax abatements or reinvestment zones, a practice that has sparked controversy among constituents.
Grassroots Activism and Political Tensions
The nonpartisan Caldwell Data Center Action Team (DCAT) has rallied citizens to demand action from the county. Local activists are urging Haden and Zaffirini to support a moratorium similar to Hill County’s, arguing that the projects are being rushed into construction while awaiting legislative and regulatory processes.
Zaffirini, a strong proponent of local control, has expressed interest in Haden’s proposals. “I’m very interested in [the county’s] proposals, and we’ll pursue them and we’ll vet them in the process,” she stated. She advised constituents to engage with the Texas Commission on Environmental Quality and Public Utilities Commission and to testify at upcoming committee hearings.
The debate over data center regulation has exposed deeper tensions within the Republican Party. While Governor Greg Abbott champions the data center boom, grassroots conservatives are pushing for maximal local control. The upcoming legislative session in January will likely see several bills focused on data center regulation, with state leaders weighing the economic benefits against the resource costs to local communities.
As the debate continues, Haden remains steadfast in his efforts to balance the needs of developers with the concerns of his constituents, navigating the complex landscape of Texas politics and environmental stewardship.
