Texas has stopped approving new data centers while state agencies study what the facilities do to the power grid, and the question of how to regulate them has become an issue in the race for governor.
Gov. Greg Abbott announced the halt as the industry expands across the state, including a $14 billion Meta campus under construction in El Paso.
"There is now a halt to any more approvals of any more data centers in the state of Texas pending the results of the audit to be undertaken by both ERCOT and the Public Utilities Commission," Abbott said.
What the state is reviewing
Abbott directed agencies to examine how much electricity and water data centers would use, whether the operators intend to supply their own power and reuse water, and how they plan to limit noise, traffic and other effects on neighboring communities.
Under the new approach, a data center must be audited by the Public Utility Commission and the Electric Reliability Council of Texas before the state will approve it. ERCOT runs the power grid that serves most of the state.
"We want to make sure, ultimately, that the power grid is going to be safe, secure, and reliable, and not overburdened by data centers," Abbott said.
The pause stays in place pending those reviews.
What the Democratic nominee is proposing
Gina Hinojosa, the Democratic nominee for governor, campaigned in El Paso and said a pause is not enough. She called for lawmakers to be brought back to Austin.
"What is happening is there are just no rules. There are no rules," Hinojosa said. "And so we need to have an emergency legislative session just on this issue so that we can hear from community members all the different ways that they are being impacted."
She also said she would revisit agreements already signed for projects underway.
