Texas has implemented a freeze on the approval of new data centers while state agencies conduct a review of their effects on the power grid. This decision comes as the data center industry continues to grow in the state, including a significant $14 billion Meta campus being developed in El Paso.
Governor Greg Abbott announced the suspension, stating that no new data centers will be approved until the audits by the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission are completed. The review will focus on the electricity and water consumption of data centers, their plans for self-supply of power, and measures to mitigate noise and traffic impacts on local communities.
Abbott emphasized the need to ensure that the power grid remains dependable and not overwhelmed by the demands of data centers. The moratorium will remain in effect until these evaluations are finalized.
Democratic gubernatorial nominee Gina Hinojosa 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 affecting water resources in El Paso and stated that residents have legitimate worries regarding water and electricity supply in their communities.
