New data center approvals blocked by Abbott
Texas Governor Greg Abbott has announced a statewide moratorium on new data center approvals. This pause will allow regulatory agencies to audit proposed data centers regarding their tax breaks, power and water usage, community impact, and ownership. Projects failing this audit will be denied connection to the state's electric grid.
Texas Governor Greg Abbott has issued a statewide moratorium on the approval of new data centers, effective immediately. The decision comes amidst growing public criticism over the rapid expansion of data centers across the state, highlighted by a recent rally at the Capitol grounds in Austin. The pause will remain in effect until the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) complete a comprehensive audit of proposed data center projects.
Governor Abbott has directed the regulatory agencies to scrutinize several aspects of data center developments. Developers seeking connection to the state’s electric grid will be required to provide detailed information on any tax breaks they are set to receive, their projected power consumption and generation capabilities, and their water usage and cooling operations. Furthermore, the audit will assess each project’s efforts to mitigate impacts on local communities and verify facility ownership.
Abbott emphasized that any data center project that fails this rigorous verification and audit process should be denied access to the state's electric grid. The duration of this audit remains uncertain. The announcement aims to ensure that future data center growth is sustainable and accountable to the state's resources and communities.