Daily Digest — August 5, 2026
Texas Governor Halts Data Center Approvals Pending Statewide Audit
Texas Governor Greg Abbott has announced an immediate moratorium on data center approvals for facilities seeking connection to the state's electric grid, according to the Longview News-Journal. The directive instructs the Public Utility Commission of Texas (PUCT) and ERCOT to conduct a "comprehensive verification and audit" of proposed data center projects. Developers will be required to disclose details on tax incentives received, power and water consumption, cooling operations, community impact mitigation efforts, and facility ownership. Projects failing the audit will be denied grid connection.
The directive applies to over 1,800 projects in ERCOT's interconnection queue, approximately 90% of which are identified as data centers, requesting over 474 gigawatts of electricity — more than five times the grid's record peak demand, as reported by Isiah Factor: Uncensored. ERCOT has paused its ongoing "batch zero" review of projects in response.
The moratorium does not affect data centers building on-site power generation or those operating outside the ERCOT region, such as facilities in El Paso. The Data Center Coalition expressed hope that the review would differentiate responsible developers, according to the Longview News-Journal.
Abbott's Moratorium Sparks Calls for Special Legislative Session
The governor's directive has drawn criticism from political opponents and advocacy groups who argue it does not go far enough, according to Houston Public Media. State Rep. Gina Hinojosa, Texas Agriculture Commissioner Sid Miller, and advocacy group Public Citizen are calling for a special legislative session to enact stronger regulations, noting the legislature's next regular session is not until 2027.
Energy experts have questioned the enforceability of the directive without new state laws. Beth Garza, a former ERCOT watchdog, raised concerns about the directive's legal standing, as reported by KTEP 88.5 FM. Political scientist Mark Jones of Rice University suggested the move could be partly motivated by a desire to energize rural voters, who show high opposition to data centers.
Abbott's campaign press secretary Eduardo Leal stated the directive has already prompted Amazon, Google, and Microsoft to adopt standards protecting communities and the power grid, per Houston Public Media. Abbott has committed to prioritizing data center regulation in the 2027 legislative session, targeting tax breaks, resource consumption, and grid connection costs.
Caterpillar Posts Record Revenue Driven by Data Center Power Sales
Caterpillar reported record quarterly revenue of $20.5 billion, a 24% year-over-year increase, according to the Dallas News. The company's power and energy division reported sales of approximately $8.2 billion, driven by increased demand for large engines and turbines used to power data centers.
Caterpillar has established multi-year agreements including one with Hunt Energy to power data centers across North America, and has supplied projects in Utah, West Virginia, and a Microsoft data center in West Texas. The report noted that the company, headquartered in Irving, Texas, posted its first quarter exceeding $20 billion in revenue.
Westlake Approves 87-Acre Data Center Despite Resident Opposition and Statewide Moratorium
The Town of Westlake Planning and Zoning Commission approved an 87-acre data center campus along Highway 377 near the Keller city line, according to NBC DFW. The facility will encompass over 1 million square feet and was approved with added conditions including sound walls, additional trees, and specific cooling devices.
Residents of neighboring Keller, particularly those in the Marshall Ridge neighborhood, voiced strong opposition. As reported by WFAA, residents cited concerns about noise pollution, water consumption, and health impacts, with some homes located only 400-500 feet from the proposed facility's property line.
The Fort Worth Star-Telegram reported that the debate also drew involvement from the Texas Association of School Boards, which issued a position paper stressing the importance of early school district involvement in data center development conversations. Keller Mayor Ross McMullin welcomed Governor Abbott's statewide moratorium directive, expressing hope it would apply to the Westlake project. Developer American Real Estate Partners noted the property had been zoned for commercial industrial use prior to updated town codes addressing data centers.
Texas Railroad Commissioner Wayne Christian cautioned that the state risks hindering economic development if it goes too far in restricting data center projects, as reported by WFAA.
Controversial proposed data center near Keller clears first major hurdle despite protest
WFAA
Westlake approves 87-acre data center with added conditions
nbcdfw.com
Keller residents oppose proposed Westlake data center as Gov. Abbott orders statewide audit
Fort Worth Star-Telegram
Some Keller residents think Westlake's proposed data center is too close to their homes.
WFAA
Westlake approves data center plan despite opposition
nbcdfw.com
Statesboro Planning Commission Recommends Data Center Rezoning; Bulloch County Tables Ban
The Statesboro Planning Commission voted 5-1 to recommend approval of a zoning change for a proposed two-story, 230,000-square-foot data center on a 26.94-acre parcel on Burkhalter Road, according to the Statesboro Herald. Developer 4AM Development LLC seeks to rezone the property from high-density residential (R-4) to office and business (O). The project includes a 32,000-square-foot electrical substation requiring up to 99 megawatts from Georgia Power.
The facility plans to use a closed-loop, water-based cooling system with estimated daily makeup water usage of 30-100 gallons and peak domestic demand of up to 1,000 gallons per day, as reported by WTOC. Wetlands on the property are under review by the U.S. Army Corps of Engineers.
Residents voiced strong opposition during the hearing, citing concerns about noise, water usage, wildlife impacts, and property values, according to WTOC broadcast coverage. As reported by Grice Connect, speakers urged the city to conduct a full environmental and community impact assessment before any land-use change. The decision now moves to the Statesboro City Council for a hearing on August 18, with a separate special use permit still required.
Concurrently, the Bulloch County Board of Commissioners tabled for 30 days, by a 3-2 vote, a proposed text amendment that would ban data centers in unincorporated areas of the county, according to WSAV3. Commissioners expressed concerns about implementing an outright ban and discussed refining the language with legal counsel.
Statesboro city planning board recommends zoning change for Burkhalter Rd. data center
Statesboro Herald
Statesboro data center rezoning clears planning commission amid resident opposition
WTOC
Statesboro Planning Commission recommends rezoning for Burkhalter Road data center
Grice Connect
Bulloch County, Statesboro vote on data center measures
WSAV3
Statesboro Planning Commission backs proposed data center rezoning in 5-1 vote
wtoc.com
Louisville Metro Council Committee Advances Six-Month Data Center Moratorium
The Louisville Metro Council's Planning and Zoning Committee voted 7-1 to advance a proposed 180-day moratorium on new hyperscale data centers to the full Metro Council for a final vote expected next week, according to Louisville Public Media. The measure had been delayed in committee for nearly a year before the abrupt shift.
The proposed moratorium, authored by District 15 Democrat Jennifer Chappell, would temporarily bar city planners from approving new data centers while the Metro Council establishes comprehensive regulations. Those regulations, developed by Mayor Craig Greenberg's administration, include:
- A ban on hyperscale data centers larger than 500,000 square feet
- Restrictions limiting other data center developments to industrial areas in Jefferson County
- Updated zoning laws developed in collaboration with utility providers, environmental experts, and residents
Mayor Greenberg, who initially viewed the moratorium as a "temporary fix," has now publicly called for its passage, as reported by WLKY. Councilwoman Dr. Paula McCraney stated the moratorium is "not anti-technology" but aims for "responsible governance," according to WAVE News. Council member Steuart Benson voted against, citing potential economic costs and revenue data centers could bring, per WDRB News.
Several other Kentucky local governments — including Bell County, Bullitt County, Daviess County, and the City of London — as well as Jeffersonville, Indiana, have already enacted data center moratoriums. The Louisville moratorium would not affect a hyperscale data center already under construction near Shively.
Louisville leaders take step toward temporary data center moratorium
WDRB News - Official
Louisville Metro Council advances data center moratorium
Louisville Public Media
Louisville committee advances 6-month data center moratorium to Metro Council
WDRB
Louisville committee advances temporary pause on data center proposals
WLKY
Louisville Metro Committee approves 180-day moratorium on new data centers
WAVE News