HOUSTON, Texas — The Republican Party of Texas is considering a proposal to make regulation of artificial intelligence (AI) and large-scale data centers a top legislative priority for the 2027 Texas Legislature, as delegates gathered in Houston on Thursday for the party’s biennial statewide convention.
The party’s Legislative Priorities Committee placed AI regulation as the 15th and final item on its list of priorities. The list also includes reforms to the Legislature, border security and infrastructure improvements, and opposition to the spread of Islamic religious law in Texas.
Committee member Patrick Von Dohlen, who is also the Republican candidate for Bexar County judge, said during committee discussions that testimony from convention participants included concerns about AI data centers.
Von Dohlen said the committee considered input from more than 160 witnesses during its review.
The committee prepared draft language that outlines proposed regulations for AI and large-scale data centers. The proposal calls for independent power generation and non-potable water sourcing for major data centers, local government authority over zoning and project approval, impact fees on developers, and a ban on tax incentives or public subsidies for data center projects.
The draft overlaps in part with a proposal announced by Texas Gov. Greg Abbott, although Abbott’s proposal does not include provisions granting local governments final approval authority over projects.
Von Dohlen said local governments, particularly in rural areas, have raised concerns about data center development and resource use.
County officials testified during the convention that they sought greater authority over zoning and development decisions. Von Dohlen said some local officials reported limited influence over permitting decisions involving the Texas Commission on Environmental Quality.
Rolando Garcia, a West Harris County delegate and member of the Legislative Priorities Committee, said delegates supported expanding local input on data center siting and operations. Garcia said data centers place demands on water and electrical infrastructure and referenced concerns about the state power grid.
State Sen. Paul Bettencourt, R-Houston, who chairs the Senate Local Government Committee, said in a statement to Houston Public Media that counties do not have authority to ban data center construction under current interpretations of state law.
Bettencourt said he supports consideration of increased local input but said regulatory fragmentation across Texas counties could affect economic development and infrastructure planning.
Von Dohlen responded that lawmakers should consider testimony from local officials and said local control remains a core value of the Republican Party of Texas.
Some Republican lawmakers in Texas have supported limiting local government authority in recent years. A 2023 state law restricts cities and counties from adopting ordinances that exceed state law in several areas.