Multiple interim hearings have been scheduled that will examine data centers.
On Thursday, April 9, the House Committee on State Affairs will meet at 10 am to discuss the following:
- Data Centers: Study the development of data centers in Texas, including its importance to global competitiveness and national security. Evaluate the direct and indirect economic growth potential fostered by in-state data center development, including growth multiplier effects and economic diversification. Identify existing secondary and post-secondary education and training opportunities and recommend pathways to satisfy increasing labor demands. Review the existing regulatory framework governing data center development and recommend proposals to streamline regulations while enabling communities to plan and manage growth responsibly. Study the implementation of SB 6 and the Large Load Batch Study Process proposed by the Electric Reliability Council of Texas, as it relates to data centers, and identify how grid-connected data center facilities and co-located resources can support grid resilience and reliability. Only invited testimony will be heard. A live broadcast of the hearing will be available here. The full hearing notice can be found here.
Additionally, the Senate Committee on Finance has scheduled a hearing for 10:30 am on July 27. One topic the committee will undertake is as follows:
- Data Center Investment and State Fiscal Effects: Since the passage of House Bill 1223, 83rd Legislature, in 2013, the state cost of providing a sales tax exemption to qualifying data centers has grown from an estimated $14.6 million for the 2014-15 biennium to a projected $3.3 billion for the 2028-29 biennium. Study the cost and consequences of the sales tax exemption provided to data centers under Tax Code Sections 151.359 and 151.3595. Make recommendations providing safeguards to ensure that Texans benefit from data center investment. Both public and invited testimony will be heard. A live broadcast of the hearing will be available here. The full hearing notice can be found here.
HillCo Partners’ Policy Research Team will produce hearing reports for these respective hearings. Hearing reports are premium content. To access HillCo Partners’ premium content, please view instructions here.
