Texas used to be ‘the best place’ to build data centers — but not anymore
Texas Gov. Greg Abbott has ordered audits of data centers’ electricity and water use and paused related environmental permits amid growing community and political opposition. Diode Ventures withdrew plans for a data center in Henderson County, while BaRupOn LLC has faced resistance to its proposed 700-acre campus near Liberty.
Texas has shifted from aggressively courting data center investment to imposing new scrutiny as residents, environmental groups and political candidates raise concerns about electricity demand, water consumption and community impacts. Gov. Greg Abbott ordered the Public Utility Commission of Texas and the Electric Reliability Council of Texas to audit power and water use, directed the Texas Water Development Board to enforce reporting requirements, and said state permits would be withheld until projects meet the new standards.
The policy shift has already affected individual developments. Diode Ventures withdrew preliminary plans for a data center near a residential community in Henderson County after community feedback and Abbott’s directives, while California-based BaRupOn LLC has encountered increasing opposition to its planned industrial and data center campus near Liberty. Abbott supports stronger requirements and potential legislation requiring annual utility reporting, while Democrats and environmental groups question the timing of the measures and whether the restrictions will remain after the elections.