Abbott says his data center pause in Texas is working, as Democrats urge him to call a special session on the issue

Texas Governor Greg Abbott has implemented a pause on new data center construction in the state, pending a comprehensive audit by state regulators. This executive action, which he states includes "guardrails and guidelines" for existing and future data centers, is aimed at addressing concerns about water and electricity consumption and local community impact. Abbott asserts that his measures, which he claims are universally adopted, have effectively halted new data center development and ensure compliance from operating facilities.

However, Democrats, led by State Representative Gina Hinojosa of Austin, are criticizing the governor's approach and are pressing him to convene a special legislative session. Hinojosa argues that residents are angered by the lack of formal regulations approved by lawmakers, leaving communities vulnerable to unchecked data center expansion without protections for water, electricity prices, and health and safety. Abbott contends that a special session is premature, citing insufficient data from power grid operators needed by the Public Utility Commission of Texas (PUC) and ERCOT to inform legislative decisions. The issue is expected to be a major focus in the upcoming legislative session in January and a point of contention in the November election.