Texas has paused the approval of new data centers as state agencies evaluate their effects on the power grid and surrounding communities. This decision comes amid the construction of a $14 billion Meta campus in El Paso, which has raised concerns about resource usage and local impacts.
Governor Greg Abbott announced the suspension, stating 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. These reviews will assess the electricity and water consumption of data centers, as well as their plans to mitigate noise and traffic issues.
Democratic gubernatorial nominee Gina Hinojosa criticized the pause, arguing that it is insufficient and calling for an emergency legislative session to address the lack of regulations governing data centers. Hinojosa expressed concerns about existing agreements and emphasized the need for community input on how these projects affect local resources.
The statewide approval halt applies to all proposed data centers, not just the El Paso facility, highlighting the broader implications for Texas’s power grid and resource management. ERCOT, which oversees the power supply for most of the state, is central to these discussions, as the demand from large electricity consumers can impact ratepayers across Texas.
