Texas has halted the approval of new data centers as state agencies assess their effects on the power grid and surrounding communities. Governor Greg Abbott announced the pause amid concerns about the facilities' electricity and water consumption, as well as their potential impact on traffic and noise levels.
This review will involve audits from both the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission before any new data center can receive state approval.
The decision comes as the industry grows in Texas, notably with a $14 billion Meta campus currently under construction in El Paso. Abbott emphasized the need for a secure and reliable power grid that is not overwhelmed by data centers. Meanwhile, Democratic gubernatorial nominee Gina Hinojosa has called for an emergency legislative session to establish regulations for data centers, arguing that current measures are insufficient.
She expressed concerns over the impact on local water resources and vowed to review existing contracts if elected.
