Interim Testimony: Data Centers

Picture of Shannon Halbrook

Shannon Halbrook

Director, Invest in Texas

Texas is home to the second-highest number of data centers in the United States, with 335 data centers currently operating and 248 more in development, according to recent Texas Tribune analysis.  

Data centers can bring clear economic benefits to a community. A data center typically increases a local property tax base and can increase revenue. Multiplier effects may induce additional economic activity and data centers can create a significant number of temporary construction jobs. 

There are also serious downsides. Data centers can bring economic growth, but policymakers must acknowledge the costs and the communities affected. Communities should have the tools to weigh the economic benefits alongside the environmental, fiscal, and other costs that data centers impose. A complete cost-benefit analysis must include both sides of the ledger. 

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