Texas and Pennsylvania Governors Impose New Data Center Restrictions

Governors in Texas and Pennsylvania have implemented new regulatory hurdles for data center developers amid rising concerns over resource consumption and infrastructure strain. In Texas, Greg Abbott ordered audits of water and power usage for new facilities, prompting the Electric Reliability Council of Texas to pause grid connection approvals for large-load facilities exceeding 75 megawatts. This follows community backlash in North Texas, where cities such as Fort Worth and Denton have enacted moratoriums or denied rezoning requests. Governor Abbott stated that data center developers had "dug their own grave" by failing to build local support.

Similarly, Josh Shapiro issued an executive order on August 18 directing the Pennsylvania Department of Environmental Protection to review data center projects only if developers commit to Responsible Infrastructure Development (GRID) standards and secure local approval. The order bypasses legislative gridlock in the Pennsylvania Senate over HB 2650, a bill intended to codify these standards into law. The move comes as rural residents voice concerns over noise and water consumption, even as Amazon commits $20 billion to build facilities in Bucks and Luzerne counties.

These state-level actions coincide with federal restrictions. President Donald Trump issued an executive order on August 26 restricting foreign-produced bulk-power system equipment, adding procurement risks for developers. In Texas, the industry has further become a political flashpoint in U.S. Senate campaigns involving Ken Paxton and James Talarico.