Texas Gov. Abbott defends data center moratorium, stresses water and power protection

News Clip5:35Fox Business·TX·9/3/2026

Governor Greg Abbott of Texas is firmly defending a statewide moratorium on new data centers, asserting that AI operators must adhere to strict guidelines. These guardrails require data centers to protect local water and power supplies, avoid disturbing neighborhoods, and contribute to lowering electricity costs for residents. Abbott emphasized the importance of data centers working with local communities to prevent backlash.

moratoriumgovernmentelectricitywateroppositionenvironmentalzoning
Gov: Greg Abbott, ERCOT, Texas Senate, Ken Paxton, Local authorities

Governor Greg Abbott of Texas has publicly defended his administration's moratorium on new data centers across the state, emphasizing that artificial intelligence (AI) operators must meet stringent conditions to conduct business in Texas. According to Abbott, these "guardrails" mandate that data centers do not deplete local water resources, avoid drawing excessive electricity from the power grid, operate in a manner that reduces electricity costs for nearby customers, and do not disrupt local neighborhoods or rural settings.

Abbott highlighted that the moratorium and accompanying guidelines were established in response to concerns from local residents, particularly those in East Texas, who experienced disruptions to their way of life from data center developments. He stated that the data centers must work collaboratively with local communities to gain support, warning that those that fail to do their "homework" or build local backing will face "backlash." The governor noted that these compliance measures have been largely adopted across the state.

When questioned about the potential for Texas to fall behind other nations like China in AI development due to the moratorium, Abbott dismissed it as an "American issue," reiterating his focus on ensuring data centers respect local environments and communities. The interview also briefly touched on upcoming political races and tropical storm recovery efforts in Northeast Texas.