Texas has halted the approval of new data centers while state agencies conduct a review of their impact on the power grid. Governor Greg Abbott announced this pause amid growing concerns about the facilities, including a significant $14 billion Meta campus being built in El Paso.
Abbott stated that the review will assess the electricity and water consumption of data centers, their plans for self-sufficiency, and measures to mitigate noise and traffic issues. The Electric Reliability Council of Texas and the Public Utilities Commission will audit each proposal before any new approvals are granted. Abbott emphasized the need to ensure the power grid remains safe and reliable.
In contrast, Democratic gubernatorial nominee Gina Hinojosa criticized the pause as insufficient. She called for an emergency legislative session to establish regulations governing data centers, expressing concerns about their impact on local communities. Hinojosa also indicated her intention to review existing contracts for ongoing projects if elected.
The statewide approval pause affects all proposed data centers across Texas, not just those in El Paso. As ERCOT manages the power grid serving most of Texas, the implications of new electricity demands extend beyond local areas, impacting ratepayers statewide.
