Texas has implemented a freeze on all new data center approvals while state agencies conduct a review of their impact on the power grid. Governor Greg Abbott made the announcement amid growing concerns over the facilities' electricity and water usage, especially with a $14 billion Meta campus currently under construction in El Paso.
Abbott directed the Public Utilities Commission and the Electric Reliability Council of Texas (ERCOT) to assess how much electricity and water these data centers would consume, whether they plan to supply their own power, and how they will mitigate effects on local communities. The governor emphasized the need to ensure the power grid remains safe and reliable.
In response to the freeze, Democratic gubernatorial nominee Gina Hinojosa has called for an emergency legislative session to establish regulations governing data centers. She expressed concerns about existing agreements for projects that could jeopardize vital water resources, particularly in areas like El Paso where residents have voiced worries about water conservation and community impacts.
