Athens pauses work on local infrastructure regulations amid state’s data center audit
The City of Athens, Texas, has halted its work on local infrastructure regulations for data centers following Governor Greg Abbott's statewide decision to pause all new data center projects for an audit of their grid connections. This pause comes after months of resident protests against a proposed 10-megawatt facility in the area. Local officials are waiting for state guidelines before adopting their own rules.
The City of Athens, Texas, announced a halt to its ongoing work on local infrastructure regulations for data centers. This decision follows Governor Greg Abbott's recent announcement of a statewide pause on all new data center projects to audit their connections to the electrical grid, citing the need to protect Texans' safety and quality of life.
Athens officials had been drafting local regulations to incorporate into their zoning ordinance and planned public presentations. However, with state regulations deemed "fluid" and the Texas legislature set to address data center rules in January 2027, the city chose to await state guidelines before proceeding with local adoptions. This local regulatory effort and the state pause occur amidst months of resident protests in Athens against a proposed 10-megawatt "flexible power farm" facility, which the developer claims would stabilize strained power grids.
Governor Abbott's office confirmed that no data center projects may advance construction until the audit concludes, emphasizing that non-compliant projects with PUCT and ERCOT requirements will be denied grid connection. Meanwhile, Henderson County, where Athens is located, previously passed a resolution outlining concerns about the impact of large-scale data centers on local infrastructure and natural resources, with Precinct 1 Commissioner Wendy Spivey advocating for active county involvement and safeguards.
Adding to the debate, President Donald Trump, in an interview with Punchbowl News, criticized Texas's stance against data centers, likening their growth to being "bigger than oil." He suggested it's a mistake to oppose them, given other communities' interest and the economic benefits they bring, also noting the importance of winning in AI development.