Texas has halted the approval of new data centers as state agencies conduct a review of their impact on the power grid. Governor Greg Abbott announced this decision amid concerns about the facilities' electricity and water usage, as well as their effects on surrounding communities. This pause applies statewide, including the $14 billion Meta campus currently under construction in El Paso.
Abbott stated that no new data center will be approved until audits by the Electric Reliability Council of Texas (ERCOT) and the Public Utilities Commission are completed. He emphasized the importance of ensuring that the power grid remains safe and reliable.
Democratic gubernatorial nominee Gina Hinojosa criticized the halt as insufficient, calling for an emergency legislative session to address the lack of regulations governing data centers. She expressed concerns about existing agreements for projects and their potential impact on local resources, particularly water.
The pause on approvals has implications beyond El Paso, as ERCOT's management of the power grid affects ratepayers across Texas. Local residents have voiced worries about the environmental impact of data centers, particularly regarding water conservation in their communities.
