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Texas lawmakers weigh 765-kv transmission line plan amid data-center protests

Legislators gathered at the Capitol for a hearing on the disputed 765-kv transmission lines and data-center approvals, while activists wore yellow to signal opposition.

On Capitol grounds, yellow-clad protesters joined a nine-hour interim hearing of the House Committee on State Affairs to discuss two contentious topics: the construction of three 765-kilovolt transmission lines and the surge of data-center projects. Testifiers, including rural landowners and utility executives, called for more local oversight, an extension of the current 180-day approval window, and revisions to how infrastructure costs are allocated between consumers and industrial users.

Lt. Gov. Dan Patrick and Senate Committee chair Charles Schwertner have asked the Public Utility Commission to abandon the transmission plan, while Gov. Greg Abbott ordered ERCOT to audit data-center applications before granting grid connections. Utilities such as Oncor, AEP Texas and CPS Energy pledged to work with affected property owners but warned that delays could increase costs and disrupt construction schedules.

Lawmakers also debated repealing the state sales-tax exemption for data centers, which the Comptroller estimates deprives the state of $1.3 billion annually. Activists see the recent pauses and audits as a turning point toward stricter regulation of both projects.

Why it matters

Decisions will determine Texas's energy grid expansion, impact industrial growth, and affect rural landowners and data-center developers.

In this story

transmission linesdata centers765-kilovoltyellow protestgrid audittax exemptionlandowner concerns
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