Press Items: Senator Juan "Chuy" Hinojosa — District 20

Austin, TX — Today, Governor Greg Abbott directed the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to take immediate steps to protect residential ratepayers from the costs of data center expansion.

Senator Juan “Chuy” Hinojosa, Vice Chair of the Texas Senate Finance Committee, released the following statement in response:

“I appreciate Governor Abbott’s directive to the Public Utility Commission of Texas and ERCOT regarding data center development in our state.

Our residential electric bills should not be negatively impacted as a result of data center expansion. Many Texas families are already struggling with high fuel, food, medical, and other costs, and should not be asked to subsidize the infrastructure costs of data centers. If they want to do business in Texas, they should pay their own way.

I also support requiring water-efficient technologies in all new data centers. Texas is already facing significant strain on our water resources, and we cannot allow data centers to further deplete this precious resource. Water is life, and its use should be managed responsibly.

Next session, count on my vote to repeal the sales tax exemption for data centers, which is already estimated to cost Texas taxpayers more than $1 billion per year. These are public dollars that should be invested in infrastructure and other priorities that benefit all Texans. I appreciate Lt. Governor Dan Patrick for assigning an interim charge on this issue, and I look forward to the Senate Finance Committee hearing on July 27th, where this matter will be discussed.

Texas is a business-friendly state. I support growth and economic development, but not at the expense of our residents, our natural resources, or our wallets.”

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