Abbott Won’t Commit to Special Session on Data Centers
Gov. Greg Abbott has mandated an audit and a temporary halt to new data center applications in Texas, responding to growing concerns over their impact on the state's electric grid, water supply, and the cost of sales tax exemptions. This action comes amidst calls from lawmakers and environmental advocates for a special legislative session and an immediate moratorium on data center development, which Abbott has not committed to.
Texas Gov. Greg Abbott has ordered the Public Utility Commission of Texas (PUC) and the Electric Reliability Council of Texas (ERCOT) to conduct a comprehensive audit of all data centers in ERCOT’s interconnection process, simultaneously halting new applications until the report is finished. This directive addresses mounting pressure from Democratic lawmakers, the Republican agriculture commissioner, and environmental groups who have raised alarms about data centers' significant demands on the state’s electricity and water resources, alongside the escalating cost of a sales tax exemption that now costs Texas over $1 billion annually.
While Abbott previously promoted Texas as an AI development hub, welcoming Google’s $40 billion investment in Red Oak, his recent pivot reflects increasing concerns among Texas voters. The audit aims to verify data centers' compliance with state requirements; projects failing to meet these standards will be denied connection to the Texas grid, a move Abbott says prioritizes Texans’ safety and quality of life.
However, critics, including Texas Rep. Gina Hinojosa and the Texas Senate Democratic Caucus, argue that Abbott's