Texas has placed a hold on the approval of new data centers as state agencies conduct an audit of their effects on the power grid. Governor Greg Abbott announced this decision amid the industry's rapid expansion, which includes a $14 billion Meta facility being built in El Paso.
Abbott instructed agencies to evaluate the electricity and water consumption of data centers, their plans for self-sufficient power, and strategies to mitigate noise and traffic impacts on surrounding communities. Before any new data center can receive state approval, it must undergo an audit by both the Electric Reliability Council of Texas and the Public Utility Commission.
Abbott emphasized the importance of ensuring that the power grid remains secure and reliable, without being overwhelmed by the demands of data centers.
Democratic gubernatorial nominee Gina Hinojosa criticized the pause as insufficient and called for an emergency legislative session to address the lack of regulations governing data centers. She expressed concerns about existing contracts that may threaten water resources in El Paso, stating that if elected, she would review these agreements. Hinojosa highlighted the apprehensions of residents regarding water usage and electricity demands from the Meta project.
