Greg Abbott Pauses New Texas Data Center Approvals

Governor Greg Abbott issued a pause on new data center approvals to allow state regulators to conduct a comprehensive audit of energy and water usage. The directive targets approximately 300 large-scale projects requiring more than 75 megawatts of power from the state grid. Under this order, the Electric Reliability Council of Texas must verify that projects are ready for construction before proceeding with interconnection studies.

The pause excludes medium and small data centers, as well as facilities with independent on-site power plants. Abbott has called for the elimination of data center sales tax breaks to protect the quality of life for residents, though he noted that companies such as Google and Meta comply with his guidelines to minimize community impact.

Texas Agriculture Commissioner Sid Miller criticized the move, arguing it lacks legislative backing. The Public Utility Commission of Texas will address non-compliance with community impact surveys on a case-by-case basis. Critics have questioned the effectiveness of the audit, noting it primarily reorders existing verification steps already performed by the grid operator.