Texas has paused the approval of new data centers as state agencies assess their impact on the power grid. Governor Greg Abbott announced this decision amid the industry's rapid expansion, which includes a significant $14 billion Meta campus project in El Paso.
Abbott stated that no further approvals will be granted until the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission complete their audits. The review will focus on the energy and water consumption of data centers, their plans for self-sufficiency, and potential effects on local communities, including noise and traffic.
Democratic gubernatorial nominee Gina Hinojosa has criticized the pause as insufficient, advocating for an emergency legislative session to address the lack of regulations surrounding data centers. She expressed concerns about existing agreements that could jeopardize water resources in El Paso, emphasizing the need for community input on these issues.
