Governor Greg Abbott's recent decision to pause data center approvals has drawn attention, particularly from President Donald Trump, who criticized the move as a mistake. Abbott announced the pause on August 3, stating that it halts new data centers from connecting to the ERCOT grid until state agencies conduct audits to evaluate various factors including tax breaks and resource consumption.
The governor's office indicated that the pause was necessary due to a lack of compliance from the industry, with fewer than 10 percent of data centers providing the requested power and water usage data. Abbott's spokesperson highlighted a significant increase in electricity demand, which has surged by 500 percent, underscoring the need for careful review.
ERCOT is currently managing over 1,800 projects seeking connections, with data centers accounting for approximately 90 percent of new requests. Projections suggest that data centers could consume between 29 billion and 161 billion gallons of water annually by 2030. Despite the pause, projects that generate their own power are not affected and can continue without delay.
Allen is about 24 miles north of Dallas.
