Data Centers in Texas

Texas: incentives, local rules, electricity and water

Tax incentives

The Texas Comptroller certifies qualifying data centers for exemptions on eligible purchases. For the qualifying-data-center program, the exemption applies to the 6.25% state sales and use tax; local sales and use taxes remain due. Large data-center projects have a separate program.

Texas Comptroller · Source checked 2026-10-14

Local moratoriums and zoning

A statewide bill is not evidence of a local moratorium. Current restrictions require a dated city or county ordinance. This section does not establish whether a moratorium applies to a particular property.

Electricity and household bills

State electricity averages do not establish a project's tariff or its effect on household bills. Project-specific conclusions require utility filings and regulator decisions. A current facility-specific bill impact is not established here.

Water and cooling

Water demand depends on the cooling system, climate, operating load and water source. A capacity figure alone cannot establish water consumption. Facility-specific withdrawal and discharge figures are unknown unless disclosed in a source.

Texas legislation and reported bill statuses