Texas has halted the approval of new data centers while state agencies conduct an audit of their effects on the power grid. This decision by Gov. Greg Abbott comes as the industry grows, highlighted by a significant $14 billion Meta campus under construction in El Paso.
Abbott stated that the pause will remain until the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission complete their reviews. These evaluations will focus on the electricity and water consumption of data centers, as well as their potential impacts on surrounding communities, including noise and traffic.
Democratic gubernatorial nominee Gina Hinojosa, campaigning in El Paso, criticized the pause as insufficient. She called for an emergency legislative session to address the lack of regulations governing data centers. Hinojosa expressed concerns about existing agreements for projects and emphasized the importance of reviewing contracts that could affect local water resources.
The statewide moratorium affects all proposed data centers in Texas, not just the El Paso project. As ERCOT manages the power grid for most of the state, the implications of new electricity demands extend beyond individual cities, impacting ratepayers across Texas.
