Legislative Intelligence
Both Chambers Just Put Data Centers on the 2027 Agenda
Speaker Burrows and Lt. Gov. Patrick released interim charges within 24 hours of each other. A total of six committees now have explicit data center mandates. The overlap tells you where 2027 legislation is headed.
By James Dickey | March 2026
What Are Interim Charges?
Interim charges are directives from the Speaker (House) and the Lt. Governor (Senate) to sitting committees of the 89th Legislature. Both chambers' committees remain active during the interim. Their studies, hearings, and reports guide what legislation gets filed when the 90th Legislature convenes January 2027. Bill filing starts November 8, 2026.
The full charges are available from each chamber: House charges (PDF) and Senate charges (PDF).
This hub covers our full series of analysis articles across both chambers.
Where Both Chambers Align
Both chambers released charges within 24 hours of each other: the House on March 26, the Senate on March 27. Four areas now have parallel charges in both chambers. When both chambers study the same issue independently, legislation in the next session is more likely. These four areas are where 2027 bills are headed.
Data center growth and regulation. House State Affairs #9 uses the word "streamline." Senate Business and Commerce uses "balance." Different verbs, same industry. The House leans pro-development with a community engagement caveat. The Senate starts from neutral and asks the committee to weigh costs against benefits. Both will hold hearings. The committee reports will show where the compromise lands.
Water consumption. House Natural Resources #5 studies water use "particularly in water-stressed regions." Senate Water, Agriculture, and Rural Affairs studies "water demands of energy-intensive technologies, including data centers." The Senate adds the explicit concern about "affordability of water for Texas residents and agricultural producers." Two committees, two chambers, two hearing schedules.
Grid reliability and interconnection. House State Affairs #9 reviews SB 6 implementation and the ERCOT batch study. Senate Business and Commerce has two charges: assessing the Texas electric grid and modernizing transmission. Both chambers are watching PUCT Project 58481 and the ERCOT interconnection overhaul.
Property tax and incentives. House Ways and Means #2 studies "the impact of exemptions" broadly. Senate Finance names the exact figures: data center sales tax exemptions grew from $14.6 million (2014–15) to a projected $3.3 billion (2028–29). The Senate cites specific Tax Code sections. That level of detail signals legislative intent, not academic study.
Four overlapping areas. Four opportunities for parallel testimony. The hearing schedule just doubled. The companies that show up to both chambers with consistent, data-backed positions will shape the conversation before a single bill is filed.
House Charges (Speaker Burrows)
Speaker Burrows released House interim charges on March 26. Two committees received explicit data center mandates with a pro-development framing. Five committees total received charges directly touching data center, energy, and infrastructure policy.
Data Centers, Water, and the Grid
Two committees received explicit data center charges. State Affairs studies regulatory streamlining, SB 6, and grid resilience. Natural Resources studies water.
Read ArticleLegislative IntelligenceGovernment Oversight & Regulatory Consistency
The Speaker authored the state's preemption law, then built a committee to review it. HB 2127, the legal landscape, and the new oversight body.
Read ArticleSenate Charges (Lt. Gov. Patrick)
Lt. Gov. Patrick released his second round of Senate interim charges on March 27. The Senate assigned data centers to four committees, going wider than the House. Sen. Charles Schwertner (R-Georgetown) chairs Business and Commerce, the center of gravity for Senate datacenter policy. The Finance Committee will audit the $3.3 billion data center sales tax exemption.
Frequently Asked Questions
What are Texas interim charges?
Interim charges are directives from the Speaker (House) and Lt. Governor (Senate) to their respective committees to study specific policy areas between sessions. The 89th Legislature’s committees remain active during the interim. Their studies, hearings, and reports guide what legislation gets filed when the 90th Legislature convenes January 2027. JD Key Consulting monitors interim hearings across both chambers and advises clients on engagement strategy.
What did Speaker Burrows prioritize for the House?
Speaker Burrows assigned charges covering data center development and water use, property tax relief and tax incentive review, foreign ownership of critical infrastructure, grid resilience, microgrids, battery storage, nuclear energy, and workforce security. He also created the Select Committee on Governmental Oversight to review HB 2127 and the Texas Regulatory Consistency Act, plus new select committees on health care affordability and general aviation. The House framing emphasizes regulatory streamlining and competitiveness. JD Key analyzes these charges for data center, energy, and infrastructure clients.
What did Lt. Gov. Patrick prioritize for the Senate?
Patrick assigned data centers to four Senate committees in his second round of charges on March 27, 2026. Business and Commerce received three datacenter charges covering growth regulation, grid reliability, and transmission modernization. Finance will audit the $3.3 billion data center sales tax exemption under Tax Code Sections 151.359 and 151.3595. Water, Agriculture, and Rural Affairs will study water consumption by energy-intensive technologies including data centers. Economic Development will study AI workforce preparation. The Senate framing emphasizes balancing economic development benefits against impacts on landowners, water, and communities. JD Key provides the full committee-by-committee breakdown.
Where do the House and Senate charges overlap on data centers?
Four areas have parallel charges in both chambers: data center growth and regulation, water consumption, grid reliability and interconnection, and property tax and incentives. When both chambers study the same issue independently, legislation in the next session is more likely. The overlap signals where 2027 bills are most probable. JD Key tracks both chambers for clients preparing testimony and developing interim engagement strategy.
How can companies participate in Texas interim hearings?
Both chambers accept invited and public testimony during interim hearings. Written submissions carry weight even without in-person appearance. Companies should monitor hearing schedules on the Legislature’s committee calendar, prepare testimony calibrated to each committee’s specific charge language, and build relationships with committee staff during the interim. The House says ‘streamline’ while the Senate says ‘balance’ on data centers, so testimony should be tailored accordingly. JD Key helps clients identify committees, prepare testimony, and develop engagement strategy.
Which committees and chairs matter most for data center policy?
In the Senate, Sen. Charles Schwertner (R-Georgetown) chairs Business and Commerce and sits on three of the four relevant committees, making him the most consequential senator for datacenter policy. Sen. Charles Perry (R-Lubbock) chairs Water, Agriculture, and Rural Affairs. Sen. Joan Huffman (R-Houston) chairs Finance, overseeing the $3.3 billion tax exemption audit. In the House, State Affairs and Natural Resources hold the primary data center charges. JD Key provides full committee rosters and cross-member analysis for clients tracking these hearings.
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