Texas has halted the approval of new data centers while state agencies conduct an audit to evaluate their effects on the power grid. Governor Greg Abbott announced this decision amid the industry's rapid expansion, including a significant $14 billion Meta campus currently being built in El Paso.
Abbott stated that the pause will remain in effect until both the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission complete their reviews. The agencies will assess various factors, including the electricity and water usage of data centers, their plans for power supply, and potential impacts on local communities.
Democratic gubernatorial nominee Gina Hinojosa criticized the pause as insufficient, advocating for an emergency legislative session to address the lack of regulations governing data centers. She emphasized the need to revisit existing agreements for ongoing projects, citing concerns over water and electricity resources in communities like El Paso.
The approval freeze applies statewide, affecting all proposed data centers across Texas. As ERCOT manages the power grid for most of the state, the implications of new electricity demands extend beyond local areas, impacting ratepayers throughout Texas.
