Gov. Abbott Says No New Data Centers For Now
Texas Governor Greg Abbott has announced a temporary hold on the construction of new data centers across the state. This decision stems from public anger over data centers' high water and electricity consumption, and concerns that they are not collaborating sufficiently with state and local governments. Governor Abbott has ordered the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all submitted applications, which will halt new permit issuance until at least December.
Texas Governor Greg Abbott has imposed a temporary halt on the construction of new data centers in the state, citing widespread public anger over their significant water and electricity usage. Abbott stated that data center operators have failed to collaborate with state and local governments, leading to a deserved backlash from residents concerned about resource availability.
To address these issues, Governor Abbott has directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of all existing data center applications. This audit will assess whether the proposed projects meet the necessary standards and practices for building and operating these facilities, including large "hyperscalers." As a result of this directive, no new permits for data center construction will be issued until at least the end of the year, as regulators expect the audit to take until December or longer to complete.
The growing public opposition to data centers has become a nationwide political issue. Democrats are reportedly planning to leverage this unpopularity against Republicans in upcoming elections, particularly given former President Donald Trump's continued defense of the industry.