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Regbase

The Data Center Divide

Bastrop County

Mixed Data Center Policies

Texas combines substantial, long-term sales-tax breaks for qualifying large data centers with grid-connection studies, fees, and infrastructure costs that can make projects slower and more expensive. Some large facilities may also face emergency power reductions or grid-stability requirements; the tax benefits have demanding eligibility conditions.

Rating and summary from Texas statewide as there are no scored current or future laws outside temporary restrictions for Bastrop County.

Specific to Bastrop County only.

pending · Unincorporated areas
This draft county policy would temporarily pause county permitting for data centers and battery-energy-storage systems in unincorporated Bastrop County while the County Fire Marshal and County Engineer conduct safety, environmental, infrastructure, and siting reviews.Bastrop County Data Center Safety and Compliance Review Period and Permitting Pause (draft, 2026)

What this means

The draft would make building or expanding data centers in unincorporated Bastrop County harder by pausing county permits until the Fire Marshal approves a review, which requires extensive equipment and supply-chain disclosures and, for battery-storage facilities, an independent engineering evaluation. It is not an outright ban, and it sets no fixed pause duration, but the approval gate could cause significant delays; the proposal was tabled, not adopted.

Timing

The draft includes a Data Center Safety and Compliance Review Period and permitting pause, referred to elsewhere as a moratorium, but it does not specify an expiration date, duration, ending event, or extension condition.

People behind it

  • Creator of the working safety-and-compliance proposal and proposer of the related Bastrop Bill of Rights.

  • Introduced Item E.4, the county resolution concerning regulatory limitations and expanded county authority.

  • County governing body responsible for establishing the proposed permitting pause, advisory committee, review process, and related actions.

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  • Proposed administering entity for the Data Center Safety and Compliance Review, permitting pause, and enforcement process.

  • Designated to evaluate data-center fire risks, conduct or oversee safety reviews, and issue written compliance determinations.

  • Directed to participate with the County Fire Marshal in studying locations for potential Data Center Development Zones.

Restrictions & requirementsHide restrictions & requirements17
  • Temporarily pauses county permitting for data centers and related projects while the County studies fire safety, water, energy, environmental, infrastructure, and legal-compliance issues; the draft does not specify an end date.

  • Requires a developer to submit a complete Data Center Safety and Compliance Review before beginning any construction in the unincorporated areas of Bastrop County.

  • Defines construction broadly to include site preparation, grading, foundation work, equipment installation, electrical interconnection, testing, and commissioning, so these activities cannot begin before review approval.

  • Requires the review to include detailed equipment, software, firmware, communications-system, manufacturer, country-of-origin, and parent-company information.

  • Requires a sworn certification that the project will not use equipment, software, firmware, or communications systems from manufacturers on the Governor’s Prohibited Technologies List or entities covered by the cited foreign-technology restrictions.

  • Requires documentation establishing the complete supply chain for battery cells, modules, and other energy-storage components.

  • Allows the County to require additional documentation verifying compliance with the Lone Star Infrastructure Protection Act, the Governor’s Prohibited Technologies List, and applicable fire and life-safety standards.

  • Requires an independent third-party engineering evaluation of the design, safety, and installation of any proposed or existing Battery Energy Storage Facility in Bastrop County, at the developer’s expense.

  • Requires submission of additional information required by state agencies and information demonstrating compliance with directives issued by the Texas governor.

  • Requires the County Fire Marshal to complete the review and issue a written determination of compliance before construction or county permit approval can proceed.

  • Requires the County to issue a written determination of compliance or noncompliance after receiving a complete review submission, creating a waiting period before the project can advance.

  • Authorizes the Commissioners Court to charge developers reasonable fees for the compliance review and related inspections, up to the cost of the review or inspection.

  • Requires denial of the review if the project uses equipment from a prohibited manufacturer or an entity owned, controlled, or influenced by the Chinese Communist Party or another foreign adversary.

  • Prevents construction after a denial until all noncompliant equipment is replaced and the developer submits a revised Equipment Manufacturer Audit demonstrating compliance.

  • Treats construction without an approved review and written compliance determination as a violation subject to the regulation’s enforcement and penalty provisions.

  • Requires developers to provide the County Fire Marshal and local first responders with a site-specific emergency operations plan for Battery Energy Storage Systems and, under the draft, for data centers.

  • Requires adequate environmental studies addressing land use and battery-storage siting, TCEQ permitting, and water impacts as part of the permitting-pause review.

Benefits & exceptionsHide benefits & exceptions3
  • The County Fire Marshal and County Engineer must study locations suitable for one or more Data Center Development Zones. If zones are later designated, they could provide identified locations for developing data centers and battery-storage facilities, subject to the study and Commissioners Court action.

  • The draft states that projects using battery chemistry with non-flammable electrolytes and no thermal-runaway risk may qualify for less restrictive siting criteria than lithium-ion systems.

  • A developer may submit the required Data Center Safety and Compliance Review at any time, and the County must issue a written compliance or noncompliance determination within a reasonable time after receiving a complete submission, creating a defined approval pathway for compliant projects.

Sources

Specific to Bastrop County only.

pending · Unincorporated areas
This proposed resolution would acknowledge the county’s limited authority over large-scale industrial projects, including data centers, and petition the Texas Legislature for expanded local regulatory powers.Bastrop County Commissioners Court resolution on county regulatory authority over large-scale industrial projects (tabled, 2026)

What this means

The resolution asks the Texas Legislature to give Bastrop County more power to regulate large industrial projects, but it does not itself create new rules for data centers. Its direct effect on building, expanding, or operating them would therefore be negligible; it only requests future legislation.

People behind it

  • Presented the August 10, 2026 resolution requesting expanded county regulatory powers.

  • Staff contact and presenter of the September 14, 2026 Chapter 231 resolution.

  • Requested to coordinate with Bastrop County on drafting a bill under Texas Local Government Code Chapter 231.

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  • Requested to coordinate with Bastrop County on drafting a bill under Texas Local Government Code Chapter 231.

  • Directed to distribute official copies of the resolution to state officials and the county's legislative delegation.

Benefits & exceptionsHide benefits & exceptions1
  • The resolution states that Bastrop County currently lacks authority to stop, prohibit, or ban developments in unincorporated areas when developers comply with applicable state requirements for floodplains, driveway access, and basic infrastructure platting.

Sources

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