Texas has halted the approval of new data centers while state agencies conduct a review of their effects on the power grid. Governor Greg Abbott announced this decision amid growing concerns regarding the electricity and water demands of these facilities, which have been expanding rapidly across the state, including a significant $14 billion Meta campus being developed in El Paso.
Abbott stated that no further approvals will be granted until audits by the Public Utilities Commission and the Electric Reliability Council of Texas (ERCOT) are completed. The governor emphasized the need to ensure that the power grid remains safe and reliable, without being overwhelmed by the demands of data centers.
In response to the pause, Democratic gubernatorial nominee Gina Hinojosa criticized the move as insufficient, advocating for an emergency legislative session to address the lack of regulations governing data centers. She expressed concerns that existing agreements for ongoing projects could jeopardize essential resources, particularly in El Paso, where residents have voiced worries about water usage and community impacts.
