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Texas Governor Abbott halts all state-issued permits for data centers until grid audit is complete
Reuters • • nation
Key Points:
- Texas Governor Greg Abbott has halted the issuance of new permits for data centers until a comprehensive audit of their energy usage and impact on the electrical grid is completed by the Texas Commission on Environmental Quality.
- The freeze affects data center developers who had been attracted to Texas due to its abundant electricity, land, and business-friendly environment, amid a surge in data center projects driven by the AI boom.
- Over 470 gigawatts of data center and large energy user projects are currently queued to connect to the Texas grid, exceeding five times the state's peak electricity demand.
- The Electric Reliability Council of Texas is auditing data centers on power consumption, tax incentives, and water use to address public concerns over rising power bills and environmental impacts.
- Abbott emphasized that data centers must bear their own costs and protect state resources, reflecting a broader trend of governors imposing stricter regulations on data center developments.
