Texas has ceased approving new data centers while state agencies conduct an audit of the power grid. Governor Greg Abbott announced this decision amid concerns over the facilities' impact on electricity and water usage across the state, including a significant $14 billion Meta campus under construction in El Paso.
Abbott stated that no new approvals will be granted until the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission complete their reviews. The governor emphasized the need to ensure that the power grid remains safe and reliable, without being overburdened by data centers.
In contrast, Democratic gubernatorial nominee Gina Hinojosa has called for more decisive action, suggesting an emergency legislative session to address the lack of regulations governing data centers. Hinojosa has expressed concerns about the existing agreements for ongoing projects, particularly regarding their impact on water resources in communities like El Paso.
The pause on approvals is statewide, meaning it affects proposals throughout Texas, not just those in El Paso. As ERCOT manages the power grid for most of the state, the implications of new electricity customers extend beyond local areas, impacting ratepayers across Texas.