ALTON, Texas — Warning that rapid data center expansion poses a serious threat to South Texas' water supply and electrical grid, U.S. Rep. Henry Cuellar is pushing federal legislation to prevent technology companies from shifting utility costs onto local residents and agricultural producers.
Cuellar detailed his proposed "Ratepayer Protection Bill of Rights" during a briefing with business owners and agricultural stakeholders in Alton, referencing a recent summit with Texas Farm Bureau leaders representing producers from Hidalgo County to San Antonio.
"They're all concerned about data centers and what that means to water, electricity, and the impact that it has," Cuellar said. "Data centers need three things: land, electricity, and water. Rural areas have the land, but ranchers and farmers are very, very worried."
Cuellar pointed out a systemic regulatory vulnerability in Texas law: under the state constitution, county governments lack general ordinance-making power, preventing them from zoning or restricting heavy industrial developments outside city limits.
"Data centers or the people that are putting data centers are going into the rural areas. Why? Because they know counties don't have that power," Cuellar explained. "We polled over 80 percent of Democrats in my area who don't want data centers, and over 70 percent of Republicans. Anybody that supports data centers needs to be looked at very carefully."
With rising fuel prices and inflation already straining household budgets across the Rio Grande Valley, Cuellar stressed that technology firms must bear the full infrastructure and utility burden required to power energy-intensive artificial intelligence and data operations.
Key elements of Cuellar's legislative initiative include:
|
Protection Area |
Legislative Target |
|
Grid & Electricity |
Prohibits utility providers from passing grid upgrades or increased generation costs onto residential ratepayers. |
|
Water Security |
Establishes protections for local aquifers and municipal water supplies from excessive industrial consumption. |
|
Noise Abatement |
Mandates operational noise controls to protect neighboring rural properties. |
"Any of those data centers should pay their way. They should not pass that cost on, whether it's water or electricity," Cuellar insisted. "The last thing we want is data centers to pass on the cost of water increases or electricity increases to homeowners, and my bill of rights stops all of that."
While acknowledging that the legislation faces hurdles under the current House majority, Cuellar stated he has coordinated with key House leaders, including Rep. Frank Pallone, to advance the bill once committee leadership shifts. He added that data center regulation and grid reliability will likely be defining issues for both Congress and the Texas Legislature in upcoming sessions.
