The data center backlash is challenging Texas' pro-business approach; Wood Mackenzie: Texas has more data center capacity under construction than any US state (Stephanie Findlay/Financial Times)

Texas’ long-standing pro-growth business model is facing growing pressure as the surge in data center development—more capacity under construction than any other U.S. state—drives concerns around power, water, land use, and local infrastructure. For CIOs and technology leaders, this signals that data center expansion is becoming more constrained by utility availability, community opposition, and policy scrutiny, which can affect cost, timeline, and long-term resilience of digital infrastructure. IT organizations should expect site-selection and capacity-planning decisions to carry more strategic risk and require closer coordination with facilities, energy providers, and state/local stakeholders.