Two proposed AI data centers targeting Angelina County stay on hold until they can meet stricter power and water rules laid out by Governor Greg Abbott, who spoke at a campaign stop in Hemphill on Sept. 29.
AmpZ and Hyper Data Grid are the two companies looking to build in Angelina County. Both projects sit behind a statewide moratorium Abbott put in place earlier this month while the state weighs the strain new data centers put on local power and water. Abbott said any facility that moves forward must supply its own electricity rather than draw off the Texas power grid, and must sign firm purchase agreements that push added supply onto the market to drive down electric rates.
The stop underscored a fight already underway in the 936 area. Angelina County commissioners and the Lufkin City Council have both asked state lawmakers for more local control over data center sites, because without a tax abatement agreement, county officials say they have no say over where these facilities land. “If we can't get an abatement, if there's not going to be an abatement, then there are zero control that we have over these data centers,” Angelina County Judge Keith Wright told KTRE. Abbott said he supports giving communities that authority.
Abbott also said the state Legislature and the Texas Water Development Board are drafting rules aimed at keeping data centers from draining local water supplies. The next regular legislative session begins Jan. 12, 2027.
Sources:
KTRE: Abbott says data center permits frozen until power, water concerns addressed
KLTV: Abbott says data center permits frozen until power, water concerns addressed