Source: Financial Times (paywall)
Texas's regulatory permissiveness and cheap electricity have made it the leading destination for U.S. data center construction, but local opposition—driven by water scarcity, grid strain, and environmental concerns—is now forcing the state to weigh growth against community pushback. This collision exposes the limits of a pure pro-business model when infrastructure demands clash with constituent needs. The outcome will determine whether Texas remains the default choice for tech infrastructure or whether competitors can exploit this political opening.