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Texas Halts New Data Center Approvals During Power Grid Audit

Governor Greg Abbott has paused the approval of new data centers across Texas.

Tobias Iverson

September 1, 20261 min read

Texas has ceased approving new data centers while state agencies conduct an audit of the power grid. Governor Greg Abbott announced this decision as the industry continues to grow, with a significant $14 billion Meta campus currently being built in El Paso.

Abbott stated that no new data center approvals will occur until the audit results from both the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission are available. The review will assess the electricity and water consumption of data centers, their plans for power supply, and their potential impacts on local communities.

Democratic gubernatorial nominee Gina Hinojosa has called for more than just a pause, advocating for an emergency legislative session to address the lack of regulations surrounding data centers. She expressed concerns about existing agreements and their implications for water resources in El Paso.

The statewide approval freeze affects all proposed data centers in 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 throughout Texas.

Sources

https://kfoxtv.com/news/local/data-center-boom-enters-texas-governors-race-as-meta-builds-14b-el-paso-campus

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Tobias Iverson

Tobias Iverson covers Denison city hall, the council, and county government.

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