Abbott orders pause on data center approvals until audit on power, water use completed
Texas Governor Abbott has ordered a pause on new data center approvals until an audit of their predicted power and water use is complete, citing concerns about the state's power grid stability. The decision has sparked debate among state officials, with some calling for a stricter moratorium and others worrying about economic development implications.
Texas Governor Greg Abbott has issued an order to pause all new data center approvals until a comprehensive audit of their projected power and water usage is completed. The Governor stated that the rapid increase in data center applications, if all were approved, could significantly endanger the reliability and stability of the Texas power grid, potentially increasing power consumption five-fold.
The directive has created political friction across the state. Texas Agriculture Commissioner Sid Miller criticized the pause as inadequate, suggesting Governor Abbott should have called a special legislative session or instituted a one-year moratorium. In contrast, Railroad Commissioner Wayne Christian warned that the state risks impeding economic development, highlighting the potential for billions of dollars in investment.
While all three officials are Republicans, the issue has divided the party, with Democrats largely aligning with the call to slow down data center growth and implement more oversight. Gina Hinojosa, Governor Abbott's Democratic opponent, alleged that Abbott has accepted millions from data center CEOs while failing to impose meaningful restrictions. The debate also underscores the rural-urban divide, with some arguing data centers are vital for bringing jobs and opportunities to struggling rural areas of Texas.