Abbott says data center permits frozen until power, water concerns addressed
Governor Greg Abbott has frozen permits for new data centers statewide until power and water concerns are addressed, impacting proposed AI data centers like AmpZ and Hyper Data Grid in Angelina County. Local leaders in Angelina County are advocating for greater control over land use and regulatory oversight, citing a current lack of authority over data center placements.
Governor Greg Abbott announced that permits for new data centers across Texas are currently frozen until state officials can adequately address concerns related to power and water resources. This statewide moratorium, implemented earlier this month, aims to assess the strain these facilities place on local resources. The Governor, speaking from Hemphill, emphasized that new data centers must either provide their own power or demonstrate how they will drive down utility costs for residents through firm purchase agreements that prevent additional strain on the Texas power grid.
The freeze directly impacts two proposed AI data centers, AmpZ and Hyper Data Grid, which are targeting Angelina County. County Judge Keith Wright highlighted the lack of local control over land use for such facilities, especially without tax abatement agreements. This prompted both the Angelina County Commissioners and the Lufkin City Council to lobby state lawmakers for increased regulatory oversight. Governor Abbott expressed support for giving communities more authority in determining where these facilities are built. The Texas Legislature and the Texas Water Development Board are reportedly drafting new rules to prevent data centers from depleting the state's water resources.