Legislative Intelligence
The Speaker Just Put Data Centers on the 2027 Agenda. Twice.
Speaker Burrows assigned data center charges to two House committees. Here's what the regulatory streamlining, water scrutiny, and SB 6 review mean for developers in Texas.
By James Dickey | March 2026
Two Committees, One Message
Speaker Burrows assigned explicit data center charges to two House committees this week. State Affairs will study regulatory streamlining and grid resilience. Natural Resources will study water. Together, they signal where the 2027 session is heading on data center policy, and they open a window for developers to shape the conversation before bills are drafted.
The full charges are in the official PDF from the Speaker's office. Here's what they mean for data center developers and the companies building alongside them.
A note on timing: Interim charges are directives from the Speaker to sitting committees of the 89th Legislature, which remains active after the second called session adjourned sine die September 4, 2025. Committee studies, hearings, and reports help guide what gets filed when the 90th Legislature convenes January 2027.
The Regulatory Streamlining Signal
State Affairs Charge #9 reads: "Study the development of data centers in Texas, including its importance to global competitiveness and national security. Evaluate the direct and indirect economic growth potential fostered by in-state data center development, including growth multiplier effects and economic diversification. Identify existing secondary and post-secondary education and training opportunities and recommend pathways to satisfy increasing labor demands. Review the existing regulatory framework governing data center development and recommend proposals to streamline regulations while enabling communities to plan and manage growth responsibly."
Read the framing carefully. "Global competitiveness and national security." "Growth multiplier effects." "Streamline regulations." That's pro-development language. The Speaker wants data centers built in Texas, and he's telling the committee to find ways to make it easier.
But there's a caveat worth its own sentence: "enabling communities to plan and manage growth responsibly." That's the Speaker hearing from communities pushing back on siting. Rural counties dealing with infrastructure strain. Cities fielding complaints about noise, traffic, and water draw during construction. The committee won't just study streamlining. It'll also study the friction points that local officials are raising.
For data center developers, here's the takeaway: the political environment's favorable, but community relations matter. Developers who show up to interim hearings with economic impact data and community engagement plans will shape the streamlining proposals. Developers who don't will be shaped by them.
SB 6 and the ERCOT Batch Study Under Review
The charge continues: "Study the implementation of SB 6 and the Large Load Batch Study Process proposed by the Electric Reliability Council of Texas, as it relates to data centers, and identify how grid-connected data center facilities and co-located resources can support grid resilience and reliability."
It's a mid-cycle review. SB 6 passed in 2025. The PUCT's still writing the rules (Project 58481). ERCOT's running the batch studies. And the committee wants to know how it's all working in practice.
Expect hearings where the committee hears from developers in the interconnection queue, ERCOT staff running batch studies, and PUCT commissioners implementing the rules. They'll ask about what's working (the "pay your own way" cost model that keeps ratepayers whole) and what's creating friction (timelines, financial security requirements, interconnection queues that move slower than capital deployment schedules).
If you're a developer currently working through SB 6 compliance, these hearings are an opportunity. The committee's looking for real-world data on what's efficient and what needs adjustment. Testimony from developers who've been through the process carries weight. So does written testimony submitted to the committee clerk.
Grid Resilience: The Framing Matters
Pay attention to the verb: the charge asks how data centers can support grid resilience. Not how to protect the grid from data centers. That's a significant editorial choice by the Speaker's office, and it tells you where the political center of gravity sits.
This framing connects to two other State Affairs charges. Charge #7 directs the committee to "evaluate existing aggregate distributed energy resource projects and microgrids across the state. Study existing programs, determine their efficacy, and consider how these projects improve reliability, reduce consumer costs, and support overall grid resilience." Charge #4 covers battery storage: "Examine the current rules and regulations regarding battery storage and safety. Evaluate potential risks to communities and make recommendations to allow the continued deployment of battery storage without compromising public safety."
Read those three charges together. The committee'll study data center grid impact alongside microgrids, distributed energy resources, and battery storage. That means behind-the-meter generation and demand response get evaluated as grid assets, not liabilities. If you're building co-located generation or on-site storage, now's the time to make the case that your facility's part of the reliability solution.
Water: The Counterweight
Natural Resources Charge #5 reads: "Examine the total water usage of data center operations in Texas, including direct and indirect uses. Evaluate regulatory, permitting, and infrastructure considerations for water-efficient data center development, particularly in water-stressed regions. Consider policy options to optimize water resources and enhance water stewardship in the data center sector."
"Water-stressed regions" is doing a lot of work in that sentence. West Texas. The Permian Basin. The Rio Grande Valley. Those are areas where data center developers see cheap land and available transmission, and where local water authorities see a finite resource that's already under pressure.
Natural Resources Charge #8 reinforces the point. It examines the Rio Grande Compact and evaluates the impact of New Mexico groundwater pumping on El Paso's surface water supply. If you're siting facilities in West Texas, both charges matter. The committee'll be thinking about data center water demand in the context of a broader regional water crisis.
There's also a funding dimension. Appropriations is monitoring water infrastructure spending. The Legislature appropriated money through HJR 7 (Proposition 4 revenue stream for the Texas Water Fund). They're not just studying the constraint. They funded the response. Developers who can show their projects align with water efficiency goals, or who invest in water recycling and air-cooled systems, will be better positioned when committee reports turn into bill drafts.
Nuclear and the Long Horizon
State Affairs Charge #1 monitors HB 14 implementation (nuclear energy industry development). Appropriations monitors the Texas Advanced Nuclear Energy Office funding and Texas Energy Fund grants. Neither charge's going to solve baseload power for data centers in the 2027 session. Reactor timelines don't compress to legislative cycles.
But the charges signal that nuclear's on the institutional agenda. The committee'll take testimony on deployment timelines, workforce development, and regulatory frameworks. For energy and nuclear clients building toward the next decade, the interim's where you establish the record the 90th Legislature will reference when it writes the next round of incentives and permitting reforms.
What to Do Now
1. Track committee hearing schedules. State Affairs and Natural Resources will schedule hearings on these charges in the coming months. Hearing notices go up on the Legislature's committee calendar. You'll want to know they're coming before they're announced publicly.
2. Prepare your testimony now. Committees take invited and public testimony. Written submissions carry weight even if you don't appear in person. If you've got real-world data on SB 6 implementation, interconnection timelines, water efficiency, or community impact, the committee wants it. Don't wait for the hearing notice to start drafting.
3. Build relationships with committee members now, not during session. The interim is when members have time. Staff are accessible. A meeting with a committee chair's policy director in April is worth more than a hallway conversation during session in February.
4. Don't forget the PUCT's parallel track. Project 58481 rulemaking continues independently of the interim charges, with its own comment deadlines. The committee's study and the PUCT's rulemaking will inform each other, but they're on different calendars. Track both. Our PUCT rulemaking analysis covers comment strategy.
5. Read the full charges. The complete interim charges PDF covers every committee, not just the two discussed here. Property tax incentives and foreign ownership restrictions also received charges. See our interim charges hub page for the full analysis.
The Speaker's told you where the conversation's happening. The committees are staffed. The hearing rooms are booked. The only question is whether you're in the room when the 2027 agenda takes shape, or reading about it afterward.
Frequently Asked Questions
What did the Speaker's interim charges say about data centers?
Two committees received explicit data center charges. State Affairs #9 directs a study of data center development including regulatory streamlining, SB 6 implementation, and how grid-connected facilities can support reliability. Natural Resources #5 examines total water usage and policy options for water-efficient development. JD Key Consulting tracks interim hearings and advises data center clients on testimony and engagement strategy.
How do interim charges affect SB 6 and the ERCOT Large Load Batch Study?
State Affairs #9 explicitly directs the committee to study SB 6 implementation and the ERCOT Large Load Batch Study Process as they relate to data centers. This means committee hearings will evaluate how the interconnection framework is working in practice. Developers currently working through SB 6 compliance should monitor these hearings and consider providing testimony. JD Key Consulting provides regulatory strategy for SB 6 compliance and ERCOT interconnection.
What do the interim charges mean for data center water use in Texas?
Natural Resources #5 directs the committee to examine total data center water usage, both direct and indirect, evaluate permitting and infrastructure for water-efficient development in water-stressed regions, and consider policy options. This signals potential water reporting or conservation requirements in the 2027 session. JD Key Consulting advises data center developers on regulatory positioning during interim studies.
How can data center developers participate in interim hearings?
Interim hearings are where the 2027 session agenda takes shape. Companies can request invitations to testify, submit written testimony, or build relationships with committee chairs and members. The State Affairs and Natural Resources committees will schedule hearings on these charges in the coming months. JD Key Consulting helps clients identify the right committees, prepare testimony, and develop interim engagement strategies.
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