A Texas county commission has rejected a proposed Amazon Web Services (AWS) data center project, citing concerns over lack of transparency and tax incentive demands, according to local officials and company statements.
Hood County commissioners voted against the project after Amazon requested up to 90% in property tax rebates for 30 years, a pitch obtained by 60 Minutes shows. The company later stated it had decided not to build in Hood County, though the project is proceeding in a neighboring county where tax incentives were approved.
The dispute highlights growing community resistance to data centers, which have become a political flashpoint in rural and suburban areas nationwide. Opponents cite environmental concerns, strain on local infrastructure, and opaque deal-making by tech giants, while supporters argue the facilities bring jobs and economic growth.
The Decision and Its Immediate Impact
On a local level, the Hood County commissioners' vote reflects broader skepticism toward data center development. County attorney Dave Eagle, one of five elected officials who opposed the project, described the company’s pitch as vague and misleading.
"They just basically approached us in a way that they're going to bring a lot of jobs in here. They're going to be good neighbors. They're going to really upgrade the community. But they wouldn't tell us exactly what they wanted to do," Eagle told 60 Minutes. "They basically came in here to razzle dazzle me."
AWS confirmed in a statement that it had evaluated multiple sites, including Hood County, but ultimately chose not to proceed there. The company emphasized its commitment to collaborating with local leaders on job creation and revenue generation where it does invest.
The Broader Backlash Against Data Centers
The Hood County case is part of a nationwide surge in opposition to data centers, which have proliferated alongside the AI boom. There are now more than 3,000 data centers in the U.S., with 1,500 more proposed, according to Pew Research Center. These facilities, which house servers for AI and cloud computing, consume massive amounts of electricity and often require substantial tax incentives to locate in rural areas.
A recent poll by The Economist and YouGov found that about two-thirds of Americans oppose new data center construction in their communities. Concerns vary but commonly include:
- Environmental impact: High water and energy use, potential pollution.
- Infrastructure strain: Increased demand on local utilities, roads, and emergency services.
- Lack of transparency: Secretive negotiations and nondisclosure agreements between companies and officials.
In Texas, where data center growth has been particularly rapid, residents like Jazmin Villegas—a Marine veteran and mother of five—have become vocal opponents. Villegas, whose farm neighbors a proposed data center campus near Dallas, expressed fears about unverified health and environmental risks.
"How do I know that these chemicals or this pollution, water, air, noise, isn't going to affect my community, isn't going to affect me?" she asked in an interview with 60 Minutes.
Economic Trade-offs and Political Divisions
Proponents of data centers argue they provide critical economic benefits, including:
- Job creation: Often hundreds of permanent and temporary positions.
- Tax revenue: Even after incentives, data centers can lower land taxes for other property owners.
- Technological leadership: Positioning communities at the forefront of the AI economy.
However, critics question whether these benefits outweigh the costs. Darrell West, a senior fellow at the Brookings Institution, described the debate as more than a not-in-my-backyard issue—it reflects existential anxieties about AI and loss of local control.
"People just feel like they no longer have control over the technology, [and] that worries them," West said. "This is a real grassroots movement. It's ordinary people all across the country, both Republicans and Democrats."
The political divide is not strictly partisan. While some conservative lawmakers support data centers for economic reasons, others oppose them due to environmental or sovereignty concerns. Similarly, progressive groups may oppose them on climate grounds, while labor advocates worry about job displacement from automation.
What’s Next for Data Center Regulation?
The Hood County vote signals potential heightened scrutiny of data center deals, particularly in rural areas. Local governments are increasingly demanding more transparency in negotiations, while state legislatures consider new regulations on energy use, water consumption, and tax incentives.
For now, the debate remains contentious and unresolved, with no clear consensus on how to balance economic opportunity against community concerns. As one county commissioner put it: "If you're in power right now and you are dealing with this issue, you have a target on your back."