Texas has halted the approval of new data centers as state agencies evaluate their effects on the power grid. Governor Greg Abbott announced this decision amid concerns regarding the facilities' electricity and water usage, as well as their impact on local communities. The pause will remain until audits by the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission are completed.
Abbott emphasized the need for a thorough review to ensure the power grid remains safe and reliable. Under this new directive, any proposed data center must undergo an audit before receiving state approval. The decision comes as the industry expands, with a notable $14 billion Meta campus currently being developed in El Paso.
Democratic gubernatorial nominee Gina Hinojosa criticized the pause as insufficient, advocating for an emergency legislative session to address the lack of regulations governing data centers. She expressed concerns about existing agreements that could threaten water resources in El Paso, highlighting community worries about the environmental impact of such projects.
