Texas, with its abundance of land, is drawing a wave of data center investment.

Why it matters: Texans and Americans are bracing for what trillions of dollars in AI infrastructure investment will mean for them.

• The state offers one of the most generous tax incentives in the nation, worth more than $1 billion annually.

The latest: Some state legislators are rethinking whether that tax break is appropriate. State Sen. Joan Huffman (R-Houston) told the Texas Tribune this month that the amount in tax breaks is "unsustainable" and she's looking into legislation regarding it.

• That effort could be bipartisan. "If you want the benefits, you've got to carry some of the burden," state Rep. Trey Martinez Fischer (D-San Antonio) told the Tribune.

The other side: U.S. Rep. Beth Van Duyne (R-Irving) said at a recent Axios event in Dallas that the incentives keep projects and jobs in the U.S. instead of abroad, noting companies already pay significant taxes.

By the numbers: Texas has 212 operating data centers as of 2024 and 651 have been announced, according to data firm Aterio. Another 157 are under construction.

• Bexar County is home to 31 active data centers, with eight more under construction and 11 more announced, per Aterio data shared with Axios.
• Medina County has nine data centers under construction, five announced and one that's active. In New Braunfels, there are seven announced and one under construction.
• There are zero active data centers in Hays County. The San Marcos City Council earlier this year voted against a measure that would have cleared the way for one.

Yes, but: Residents are concerned over water demands in a state experiencing drought and electricity demands that could lead to higher bills.

• Jobs and economic development — the main benefits politicians and companies point to — could be short-lived unless local governments secure longer-term gains for local communities.

The bottom line: Communities across the country are attempting to strike a balance between economic opportunity and rising concerns over water use, energy demand and costs.

Go deeper

San Antonio home sellers are turning into what Zillow calls "accidental landlords."

The big picture: As buyers gain leverage and homes take longer to sell, a growing share of homeowners are renting their properties out instead.

By the numbers: Nationally, 2.3% of rental listings on Zillow in October were previously for sale, according to the real estate site. That's the highest level since late 2022, when mortgage rates topped 7%.

• San Antonio has the fourth highest share of accidental landlords in the country, with 3.9%, per Zillow.

How it works: These homes were listed for sale on Zillow for at least two weeks, then delisted and relisted as rentals within three months of being off the market.

Zoom in: Accidental landlords are most common in softer markets with more price cuts, Zillow found.

• Texas and Florida had 7 of the 10 metros with the highest shares of accidental landlords, while Denver led at 4.9%.
• Shares were lowest in the Northeast and Midwest markets.

Zoom out: Charging rent may help homeowners cover their mortgage payments, especially those with low rates.

• But being a landlord isn't easy — and costs can pile up, from repairs to property management fees.

Between the lines: Accidental landlords also add homes to the rental pool, which can ease rent prices.

What we're watching: Whether sellers who pulled listings last year have better luck as they try again. Redfin reports that many have relisted.

🛍️ Pearl developers are planning a new retail district with space for 20 stores in a bid to attract more daytime foot traffic. Construction could start next year. (SA Business Journal 🔑)

Bexar County Court-at-Law Judge Rosie Speedlin Gonzalez resigned yesterday in a deal for felony criminal charges against her to be dropped. (KSAT)

The House Ethics Committee ended its sexual misconduct investigation into former U.S. Rep. Tony Gonzales (R-San Antonio), saying it no longer has jurisdiction after Gonzales resigned. (Express-News 🔑)

🎤 Puerto Rican pop star Chayanne will perform at the Frost Bank Center in September. Tickets go on sale at 10am Friday. (KENS)

Each Spurs playoff victory this year is going to feel — and taste — good.

The latest: San Antonio businesses are offering free coffees, breakfast tacos and more to celebrate when the Spurs win.

Here are some deals we've spotted, available the day after a win:

• Eightball Coffee: Free 8-ounce drip coffee, 8-10am.
• Taco Palenque: One free breakfast taco with coupon code SPURSWIN from 6 to 9am. Every combo also comes with a free Spurs cup.
• La Panadería: The first 50 guests at each location will get a free Fiesta-themed mini concha with purchase of coffee, food or pan dulce.
• Ladino: Free dip and pita with purchase of any cocktail or mocktail.
• Mural Roasters: Free 8-ounce drip coffee, 7-9am.

What's next: The Spurs face the Portland Trail Blazers again at 7pm tonight at the Frost Bank Center. It will stream live on NBC and Peacock.

Fiesta's aftermath is always apparent — when the streets have cleared of people, they're left covered in confetti and chicken-on-a-stick debris.

Why it matters: San Antonio loves to party with a purpose, but we make a lot of trash during 11 days of revelry.

Here are some tips to celebrate Fiesta in a way that's a little friendlier for the planet:

• Fill your cascarones with colored or recycled paper instead of plastic or metallic confetti. The eggshell is already biodegradable.
• Pack drinks and snacks in reusable cups and containers.
• Look for the recycling bins along parade routes for your bottles and cans.
• Leave your car at home. Take VIA's Park and Ride service, or walk or bike if you can. Taking a rideshare or a carpool also helps.

The bottom line: The city's biggest party doesn't have to make such a mess.