MCLENNAN COUNTY, Texas (KXXV) — Texas Agriculture Commissioner Sid Miller is calling for a temporary pause on hyperscale data center development across the state, citing concerns about land use, water demand, and strain on the power grid.
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"We're moving way too fast," Miller said.
Miller says Texas currently lacks the oversight and regulations needed to manage the industry's rapid growth — and that without a pause, the state risks long-term consequences for its resources and communities.
"When agriculture collides with these global tech giants, there's gonna be winners and losers," Miller said.
Miller is questioning how much pressure data center projects could put on the ERCOT grid during summer heat and winter storms, how they could impact property values, and who will ultimately benefit from tax incentives offered to developers.
"We need to slow down, evaluate this. I'm not saying we don't need them, but we need to be thoughtful," Miller said.
Miller says a temporary moratorium would give state leaders time to study the long-term impacts on the Lone Star State.
"We deserve a balance in data center policy that safeguards our resources, safeguards our economy, and it safeguards our way of life. A temporary moratorium is not anti-progress. It's, it's pro-Texas actually," Miller said.
To advance that goal, Miller has formed a formal federal partnership with Congressman Pete Sessions to introduce legislation establishing Agriculture Freedom Zones, or AFZs, nationwide. The proposed legislation would create a voluntary, incentive-based federal framework designed to protect the country's most productive farmland while guiding large-scale development toward areas less critical to domestic food production.
"I think we need to use a little cowboy logic. We need to slow down, take a deep breath. That's why I've introduced in Congress, agriculture Freedom zones to give these data centers, incentives to build, not in our productive farmland, but in marginal land, brown zones," Miller said.
Miller says farmland is the foundation of America's food security, and the families who steward that land sustain national strength through its productive use.
"I think maybe we've defended the data centers a little too much. And I think we need to look out for farmers, ranchers, and property owners," Miller said.
But supporters of data center development argue the facilities are critical to supporting digital services, AI growth, and Texas's economy. Local leaders in communities like Lacy Lakeview say the multi-billion-dollar projects could generate revenue to improve roads, utilities, and other infrastructure.
Governor Greg Abbott has publicly supported data center expansion — including a major partnership with Google to invest $40 billion in Texas AI and data infrastructure. The governor's office says those investments will create jobs, support businesses, and strengthen the state economy.
Meanwhile, Politico Pro reports data center developers have spent millions to influence Texas politics ahead of the 2027 legislative session.
For months, we've been tracking the rapid expansion of data centers across Central Texas, with projects planned in McLennan, Hill, and Bell counties. Texas ranks second in the nation for data centers. Now, Hill County is becoming one of the first in the state to enact a temporary ban on data centers.
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