Daily Digest — August 4, 2026
Texas Governor Halts Data Center Grid Connections Pending Statewide Audit
Texas Governor Greg Abbott has ordered an immediate pause on all new data center projects seeking to connect to the state's power grid, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit before any further approvals are granted. According to FOX 7 Austin, the directive tasks PUCT Chairman Thomas Gleeson and ERCOT CEO Pablo Vegas with verifying power and water usage for proposed projects, with facilities failing to meet state standards to be denied grid access.
The scope of the audit is substantial. As The Waco Bridge reported, nearly 2,000 proposed data center projects currently sit in the interconnection queue. Developers will be required to disclose:
- Anticipated tax breaks
- Projected power consumption and generation capabilities
- Water usage and cooling operations
- Efforts to mitigate local community impacts
- Facility ownership details
Governor Abbott noted that approximately 90% of new power grid connection requests come from data centers, according to KVUE. He stated that data centers should provide their own power, be additive to the grid, reduce electricity costs for existing residents, and reuse their own water resources. ERCOT confirmed it would postpone its "Batch Zero" transmission planning study in response to the order.
The moratorium has left more than 250 planned projects in limbo, as reported by KVUE. In Bastrop County, the League of Independent Voters of Texas is actively opposing developments, including a proposed Pacifico Energy project. Pacifico Energy issued a statement supporting the governor's efforts. The Data Center Coalition expressed hope the audit would distinguish responsible developers and urged regulators to act swiftly, per Community Impact.
State Rep. Gina Hinojosa, an Austin Democrat and Democratic nominee, called for an emergency moratorium and a special legislative session to address oversight and tax exemptions, according to Community Impact. No timeline has been set for the audit's completion. Construction on at least one data center in Bastrop County was observed continuing shortly after the announcement, as KVUE noted.
Texas halts power grid connections for new data centers over energy, water supply concerns
FOX 7 Austin
Texas pumps brakes on data centers as audit is conducted
KVUE
Texas halts data center approvals pending audit of 2,000 projects
The Waco Bridge
Texas to pause new data center projects until audit is conducted, Gov. Abbott says
Community Impact
New data center approvals blocked by Abbott
The Facts
Kentucky Sees Surge of Data Center Interest at Former Industrial Sites, Governor Questions $100B Paducah Project
Kentucky is emerging as a target for hyperscale data center developers seeking to repurpose former industrial sites with existing high-capacity electrical infrastructure, according to the Kentucky New Era. Key projects include:
- **Paducah Gaseous Diffusion Plant (McCracken County):** The U.S. Department of Energy announced plans to convert the former uranium enrichment site into a 1.8-gigawatt hyperscale data center campus backed by over $100 billion in private investment. The project anticipates 8,000 construction jobs and 600 permanent positions, with completion targeted for 2031.
- **Hancock County:** TeraWulf acquired a former Century Aluminum smelter site to develop a 482-megawatt data center to be leased to AI company Anthropic.
- **Other sites:** Developers are exploring former coal mines in Bell County (where a temporary moratorium was enacted), an industrial park in Pikeville, and a former AK Steel mill in Boyd and Greenup counties.
- **Mason County:** The planning and zoning committee approved rezoning of over 2,000 agricultural acres for a hyperscale data center despite local opposition.
However, the Paducah project has drawn scrutiny. As reported by Forward Kentucky and WBKO News, Governor Andy Beshear stated he was not briefed by any of the companies or agencies involved. The governor demanded clarity on jobs, environmental impacts, and tax revenues, stating developers must prove there will be no environmental harms.
Kentucky Attorney General Russell Coleman praised the Paducah project, saying it was handled "the right way," according to WBKO News. Organizers claimed the facility will include its own energy source to avoid utility rate increases, as reported by WBKO News.
Residents in Hancock County have voiced objections to the Kentucky Public Service Commission regarding the TeraWulf project, citing concerns about utility costs, pollution, and noise. Environmental attorney Byron Gary cautioned that transmission upgrades needed for these projects could be socialized across all ratepayers, per the Kentucky New Era.
Data centers eye idle industrial sites for massive power needs
Kentucky New Era
Kentucky Governor Questions Proposed Data Center Project in Paducah
Forward Kentucky
Kentucky Governor Beshear Not Briefed on $100 Billion Paducah Data Center Investment
WBKO News | South-Central Kentucky
Kentucky Attorney General Russell Coleman on the new hyper-scale data center in Western Kentucky
WBKO News | South-Central Kentucky
AI data center coming to Western Kentucky
WBKO News | South-Central Kentucky
Salem City Council Votes Unanimously to Advance Data Center Moratorium
The Salem City Council voted unanimously to move forward with a moratorium on data center development following a special meeting that drew capacity crowds at Loucks Auditorium, according to KATU News and the Salem Reporter. The proposed pause would last either 60 or 120 days, per KATU.
The vote comes after extensive public comment from residents citing concerns about noise, utility price increases, and contamination of drinking water. The city attorney emphasized the importance of considering Salem's water supply given anticipated reservoir drawdowns on the Santiam River, as reported by KATU News.
The action follows Governor Tina Kotek's decision to withdraw the state from a land deal for a data center project in Southeast Salem. California-based Verrus has filed an application with the city for its Oakline at Mill Creek data center campus, which remains pending, according to KATU and the Salem Business Journal. The council has also established a nine-member Data Center Task Force charged with developing recommendations by year's end.
Other Oregon cities are taking similar steps. Hillsboro has issued a 120-day temporary moratorium on new or expanded data center and battery storage projects. Woodburn is also considering a moratorium, with Verrus reportedly eyeing that area as well, per KATU News.
Salem City Council votes to pause data center development
KATU News
Salem Weighs Data Center Moratorium After Oakline Filing
Salem Business Journal
Salem City Council convenes special meeting on data center moratorium
Salem Reporter
5 takeaways ahead of Salem city council’s data center moratorium meeting
Salem Reporter
