Texas has ceased approving new data centers as state agencies conduct an audit of their impact on the power grid. Governor Greg Abbott announced this decision amid the industry's rapid expansion, including a $14 billion Meta campus currently under construction in El Paso.
Abbott stated that no further approvals will be granted until the results of the audit by the Public Utilities Commission and the Electric Reliability Council of Texas (ERCOT) are complete. The review will assess the electricity and water consumption of data centers, their plans for self-supply and water reuse, and their potential effects on local communities.
The Democratic gubernatorial nominee, Gina Hinojosa, criticized the pause as insufficient and called for a special legislative session to address the lack of regulations governing data centers. She emphasized the need to consider the concerns of residents affected by these projects, particularly regarding water and electricity usage.
The statewide approval halt applies to all proposed data centers in Texas, not just the notable El Paso project. ERCOT's management of the power grid means that the implications of new electricity demands extend beyond individual cities, affecting ratepayers across the state.
