Governor Shane Emerson has introduced an amendment to the Texas Strategic Investment and Job Creation Act of 2026 that would remove data centers from eligibility for several proposed state development incentives, according to a press release issued by his office.

The amendment would exclude data centers from temporary property-tax abatements, state infrastructure assistance and expedited permitting under the underlying bill. The release did not provide the amendment’s text, a legislative timetable or details on the bill’s current status.

The broader legislation would offer targeted incentives to major projects that meet job-creation and revenue requirements. According to the release, it would also include clawback provisions for projects that fail to meet their commitments.

Emerson said his proposal would retain those tools for other qualifying developments, including factories, mixed-use projects and sports venues, while preventing data centers from receiving the same benefits.

“Public incentives should support projects that create large numbers of stable, well-paying jobs and deliver lasting benefits to working families,” Emerson said in the release.

He argued that data centers can require substantial electricity, water and public infrastructure while maintaining relatively small permanent workforces after construction is complete. Emerson said taxpayers should not be expected to subsidize projects when, in his view, the public costs outweigh the long-term employment benefits.

The proposal comes as governments weigh how to encourage private investment while managing demands on infrastructure and public budgets. Data centers can be significant construction projects, but Emerson’s argument focuses on the number and quality of permanent jobs created after a facility opens.

“This is not an argument against technology or private investment,” Emerson said. “Companies remain free to build data centers where the market supports them.”

Under Emerson’s approach, companies could still pursue data-center construction without the incentive package contemplated in the Texas bill. The release said the amendment is intended to direct scarce public resources toward projects that expand the skilled workforce, produce dependable careers and support long-term local growth.

Emerson called for bipartisan support, framing the measure as a question of measurable economic returns rather than opposition to the technology sector. He said incentives should be evaluated based on employment outcomes, responsible use of public resources and benefits to local communities.

“Every incentive must answer one basic question: What are working people getting in return?” Emerson said. “When the answer is too few jobs and too much public cost, we should have the courage to say no.”

The press release did not include responses from data-center companies, business groups, legislators or local officials. It also did not estimate how much potential tax revenue, infrastructure support or permitting activity could be affected if the amendment is adopted.

The proposed exclusion would leave the bill’s incentive framework available to other projects that meet its stated requirements, while creating a separate standard for data centers based on their expected public-resource use and permanent job creation.