Athens pauses data center regulations as Texas reviews statewide policies

News Clip1:11CBS19·Athens, Henderson County, TX·8/8/2026

The city of Athens, Texas, has paused its plans to implement local data center regulations. This decision follows a statewide halt ordered by Governor Greg Abbott on approving new data center connections to the Texas power grid. Athens plans to await further guidance from the state as the Texas Legislature is expected to address data center rules in 2027.

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Gov: Governor Greg Abbott, Texas Legislature, City of Athens

The city of Athens, Texas, has halted its efforts to create new local regulations for data centers. This decision comes after an order from Governor Greg Abbott, who issued a statewide pause on approving new data center connections to the Texas power grid.

City staff had been developing supplemental rules for data centers to be added to the city's zoning ordinance, with public input anticipated before finalization. However, with state regulations still under development and the Texas Legislature expected to consider data center rules in 2027, Athens city leaders have decided to wait for more state guidance before adopting their own requirements.

Former President Donald Trump, in a sit-down with Punch Bowl News, expressed his disagreement with pausing new data center development in Texas, comparing the industry's potential economic impact to that of oil. While supporters emphasize the billions of dollars and jobs data centers could bring to Texas, some residents have voiced concerns regarding increased energy costs, water usage, and other environmental impacts.