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Texas Gov. Greg Abbott is calling for a ban on new AI data centers in rural neighborhoods, a notable shift for a governor who once branded the state the “epicenter of AI development.”

Some shit you should know before you dig in: Not long ago, Abbott actively courted the data center industry, touting Texas as an AI hub after Google announced a $40 billion investment in the state in November. But data centers have grown deeply unpopular, especially in rural areas, where a recent University of Texas/Texas Politics Project poll found nearly two-thirds of residents oppose the facilities being built in their communities. Opponents warn data centers put local water and air quality at risk and could send power bills climbing. Supporters counter that there is an enormous amount of “misinformation” surrounding data centers, which some say is being driven by the Chinese government in an effort to slow the US down in the AI race.

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What’s going on now: Speaking at a campaign stop last week, Abbott said he’s “pushing back against these AI data centers that are trying to build in our neighborhoods.” He added, “We must prohibit them from building AI data centers in rural Texas neighborhoods, and we must eliminate the tax break they are getting. They must be responsible for funding their own projects here in Texas.”

The push builds on a regulatory framework Abbott laid out in a June 10 letter to state agencies, which called for data centers to add their own power to the grid, pay for their own infrastructure, reuse their own water through closed-loop systems, and report their annual water and electricity use.

His campaign said Tuesday’s comments “track with” that letter. He also wants lawmakers to repeal the sales tax exemptions and other incentives the facilities currently enjoy. Regulators at the Public Utility Commission and ERCOT face a July 17 deadline to respond to his recommendations.

This all comes as Abbott faces accusations he’s simply covering himself politically. His Democratic opponent, Gina Hinojosa, said the governor “has no credibility on the issue,” arguing he “helped create the most generous tax dollar giveaway to data centers in the country so Texans would foot the bill.”

Abbott has received more than $2 million from people and companies tied to the tech and AI industries since last year. “No one believes that the arsonist is going to put out the fire,” Hinojosa said.

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