Gov. Abbott pauses new Texas data center growth for power, water audits
Texas Governor Greg Abbott has paused new data center approvals until detailed power and water audits are completed. This action aims to establish new guidelines for operators, require ownership disclosure for grid connection, and potentially grant local governments more control over data center placement. The move signifies a shift in the state's approach to evaluating the industry.
Texas Governor Greg Abbott has halted new data center approvals across the state, mandating comprehensive power and water audits before any further expansions are permitted. This decision marks a significant change in the state's evaluation of the data center industry, according to Grayson County Judge Bruce Dawsey.
State Rep. Shelley Luther revealed that Governor Abbott has instructed the Public Utility Commission and the Electric Reliability Council of Texas to create new guidelines for data center operators. These directives will require disclosure of ownership, beyond just operators, to prevent foreign adversaries from accessing the state's electric grid. Non-compliance will result in denied permits and grid connection. Luther emphasized that data centers are expected to be self-sufficient, providing their own power and reusing water without tax abatements.
Both Luther and Judge Dawsey expressed a desire for increased authority for local governments in deciding where industrial developments, like data centers, are located. Dawsey noted the tension created by Texas's property rights framework when industrial projects are sited near residential areas. He hopes the governor's pause will lead to more county-level input on development decisions and that counties will reconsider offering tax abatements for such facilities, advocating for data centers to contribute to local infrastructure improvements.
While some are calling for a special legislative session to address data center impacts on the power grid, Luther believes more time is needed to draft effective legislation that protects Texans. She highlighted that this issue has bipartisan support, with both Democrats and Republicans seeking to safeguard the state's residents.