Texas has halted the approval of new data centers while state agencies conduct an audit of the power grid. This decision comes as the industry continues to grow across the state, including a significant Meta facility with a $14 billion investment currently being built in El Paso.
Governor Greg Abbott announced the suspension, stating that no new data center approvals will be granted until the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission complete their assessments. These evaluations will focus on the electricity and water usage of data centers, their plans for self-supply of power, and measures to mitigate noise and traffic impacts on surrounding communities.
Democratic gubernatorial nominee Gina Hinojosa has called for an emergency legislative session to address the lack of regulations governing data centers. She expressed concerns about existing agreements for projects already in progress, emphasizing the need to safeguard water resources critical to communities like El Paso.
