Gov. Greg Abbott has ordered a halt of all data center approvals in Texas amid ongoing pushback against the rapidly growing industry.
The governor said he directed the Texas Commission on Environmental Quality and other state agencies to suspend all data center permits until after state utility regulators complete an audit of the developments.
“This action is consistent with my whole-of-government approach to ensure Texans’ natural resources and way of life are protected,” Abbott said.
Monday’s order marks a further shift in tone for Abbott, who last year called Texas “the epicenter of AI development” while touting Google’s $40 billion investment in the state.
A few months ago, Abbott directed the Public Utility Commission, the Electric Reliability Council of Texas and the Texas Water Development Board to audit proposed data centers, requiring developers to report projected water and power use before connecting to the state power grid. The directive imposes no direct regulation but seeks greater transparency from an industry that has historically disclosed little about its water and power use or its customers.
Heading into the November midterm election, some Republicans are worried their past support for the data center industry could cost them votes. In July, Agriculture Commissioner Sid Miller received applause from a bipartisan crowd after telling Bastrop County voters that “Democrats have it right” on the issue. Audience members also chanted against Abbott, who is up for reelection.
In his letter Monday, Abbott said he expects all data center developers to cover all electrical infrastructure costs and report electricity and water usage. The governor said he expects his actions, as well as the Legislature’s agenda in January, to result in lower residential electric bills and protect residents’ water supplies in their local communities.
Drawn by abundant land, plentiful energy resources and, until recently, a favorable regulatory climate, companies have invested billions of dollars in Texas data centers. The corridor between Temple and San Antonio alone is home to nearly 80 operating or under-construction facilities, with many more planned.
Urban and rural grassroots movements have urged local and state officials to slow the rapid industry expansion. The state currently has more than 500 data centers, and 500 gigawatts of capacity have already been requested from the statewide grid for more development, according to state House testimony last month. Texas has recently surpassed Virginia as the No. 1 state for data center growth.