Gov. Greg Abbott touts tech company cooperation, following Trump criticism of data center policy
Texas Gov. Greg Abbott has issued a temporary moratorium on new data centers connecting to the state's power grid, citing concerns over energy and water usage. This action follows criticism from former President Trump, with major tech companies like Meta, Google, OpenAI, and Amazon pledging to comply with the new standards.
Gov. Greg Abbott of Texas has enacted a temporary moratorium on new data centers connecting to the state's power grid. This directive, a reversal of his previous pro-data center stance, mandates a thorough review of data centers' energy and water consumption and community impact. The move comes amidst criticism from former President Donald Trump, who called the policy a "mistake" for Texas.
In response to Abbott's directive, major tech companies including Meta, Google, OpenAI, and Amazon have pledged to comply. Meta stated it pays for its own grid infrastructure and launched a fund for water and energy infrastructure. Google highlighted a $40 billion investment in Texas and affirmed its commitment to grid reliability and water stewardship. OpenAI promised to fund its infrastructure and minimize water use, while Amazon also committed to meeting the governor's standards.
Critics, including Austin state Rep. Gina Hinojosa, expressed skepticism about the companies' swift compliance, arguing that the "guardrails" may not be robust enough. Hinojosa called for a special legislative session to implement stronger data center regulations, suggesting the current rules favor corporations over Texans. This policy shift is significant given that data centers are projected to request 474 gigawatts of energy from the Texas grid in the coming years, vastly exceeding current state demand.