Texas Governor Greg Abbott has issued an executive order halting the approval of new construction permits for data centers. The directive requires the Texas Commission on Environmental Quality to pause all licensing until a comprehensive review of the impact of high-energy data centers on the state power grid is completed.
The state has become a major global hub for computing power over the past three years. However, public opposition and concerns regarding AI development have prompted the governor to intervene. Last month, Abbott already suspended the connection of new data centers to the state grid to initiate a specialized assessment of their operations.
Data shows that the total capacity of projects waiting to connect to the Texas grid has reached 470 gigawatts, which is more than five times the state's peak electricity load. The Electric Reliability Council of Texas is now reviewing several metrics, including power consumption, water usage, and the impact of existing tax incentives.
Governor Abbott stated that the interests of Texas residents must be prioritized. Data center operators are now required to cover the costs associated with protecting local power and water resources. This shift in policy reflects a broader trend among US governors who are tightening regulations to address voter concerns over rising electricity costs.
