The Data Center Divide
A policy snapshot ahead of the 2026 midterms. Mapping data center incentives, restrictions, and bans through legislation, regulations, and executive actions across all 50 states and 1,462 local jurisdictions.
City of Sulphur Springs
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 City of Sulphur Springs.
repealed · City of Sulphur SpringsThis temporary injunction was issued by the 62nd Judicial District Court of Hopkins County in litigation concerning a proposed 30-data-center campus on approximately 5,000 acres in Sulphur Springs.Temporary Injunction in City of Sulphur Springs v. Vistra Corporation and related parties (2026)
What this means
The deed restriction could block an on-site power plant for a data center on this particular property, creating a meaningful obstacle and potential delay. But the appeals court only overturned the temporary injunction and sent the case back; it did not decide whether the restriction is valid, and the dispute does not apply statewide.
Restrictions & requirementsHide restrictions & requirements1
A perpetual deed covenant prohibits commercial production, generation, or storage of electricity on the approximately 5,000-acre property and prohibits siting any commercial power station or energy-storage facility there. It binds the City and successors, creating a barrier to a data center project that relies on an on-site power plant.
Benefits & exceptionsHide benefits & exceptions4
The Development Agreement allows the roughly 5,000-acre tract to be developed flexibly to make it competitive for attracting industry and business, which supports data-center development. flexibly develop the Tract
The Development Agreement permits reclamation of the tract for agricultural, industrial, and commercial standards, providing a basis for industrial or commercial data-center use. agricultural and/or industrial and commercial standards
The Development Agreement requires Luminant to convey fee-simple title free and clear of liens and encumbrances, except for specified permitted exceptions, which protects the City’s ability to use and develop the property. fee simply title
The appellate court declared the temporary injunction against the City’s proposed data-center-related use void and ordered it dissolved because the trial court’s order did not specifically state the facts supporting irreparable injury. This removes the interim injunction, although the merits remain for further proceedings. declare the temporary injunction order void
Sources
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