Abbott orders halt to Texas data center approvals pending state audit
Texas Governor Greg Abbott has ordered a halt to all data center approvals across the state, pending an audit by state utility regulators. This action is a response to growing public pushback regarding the industry's significant water and power consumption. Abbott also expects developers to cover electrical infrastructure costs and report usage data.
Texas Governor Greg Abbott has directed state agencies, including the Texas Commission on Environmental Quality, to suspend all data center permits statewide. This order, effective immediately, will remain in place until state utility regulators complete a comprehensive audit of data center developments.
Governor Abbott's decision marks a shift from his previous pro-development stance and comes amidst increasing public and political opposition to the rapidly expanding data center industry in Texas. The governor cited the need to protect "Texans' natural resources and way of life." Earlier, he had instructed the Public Utility Commission, Electric Reliability Council of Texas, and Texas Water Development Board to audit proposed data centers, requiring developers to report projected water and power use. This directive, while not imposing direct regulation, aims for greater transparency from an industry often criticized for its undisclosed resource consumption.
The pushback against data centers has gained bipartisan traction, with figures like Agriculture Commissioner Sid Miller publicly opposing unchecked expansion. Attorney General Ken Paxton has also initiated an investigation into a controversial data center project in Taylor over potential parkland use concerns. Abbott stated he anticipates these actions, along with upcoming legislative efforts in January, will lead to lower residential electric bills and safeguard water supplies for communities across Texas.