Abbott says data center permits frozen until power, water concerns addressed
Governor Greg Abbott has placed a statewide moratorium on new data center permits in Texas, affecting projects like AmpZ and Hyper Data Grid in Angelina County. Abbott emphasized that new facilities must provide their own power, reduce utility costs for residents, and that local communities need more control over data center placement. The Texas Legislature and Water Development Board are currently drafting new rules to address these concerns.
Texas Governor Greg Abbott has enacted a statewide moratorium on new data center permits, specifically impacting two AI data centers, AmpZ and Hyper Data Grid, which are targeting Angelina County. During a stop in Hemphill, Governor Abbott stated that data centers must provide their own power rather than drawing from the Texas grid and prove they will drive down electricity costs for nearby residents.
The Governor also expressed support for granting cities and counties greater authority over land use decisions regarding data centers, a power he noted local leaders currently lack. Angelina County Judge Keith Wright confirmed that without tax abatement agreements, county leaders have no control over data center land use, prompting both Angelina County commissioners and the Lufkin City Council to lobby state lawmakers for regulatory oversight.
Furthermore, Abbott announced that the Texas Legislature and the Texas Water Development Board are working on new regulations to prevent data centers from depleting local water supplies. The next regular session for the Texas Legislature is scheduled for January 12, 2027.