Texas Pauses New Data Centers: Map of States Where Projects Are Booming
Texas Governor Greg Abbott said projects that fail to meet state requirements should be denied access to the grid.
The state of Texas has temporarily halted approvals for new data centers, as officials scrutinize projects connected to the electrical grid. This measure follows a nationwide surge in AI infrastructure construction, accompanied by growing concerns about energy consumption, water usage, and community effects. Governor Greg Abbott tasked the Public Utility Commission of Texas and the Electric Reliability Council of Texas to review all data center projects before they can connect to the grid.
Projects that do not meet state standards will be denied access. Abbott emphasized that Texas residents must be prioritized in this review process. The decision represents a departure from Texas' reputation for being business-friendly, with data centers now facing increased scrutiny. Texas currently holds more data centers than any other state except Virginia, according to Pew Research Center.
Approximately 474 gigawatts of projects are awaiting grid connection, with many linked to AI growth. This figure surpasses five times Texas' current peak electricity demand. The review process requires detailed information about electricity usage, water consumption, ownership, incentives, and mitigation plans. No timeline has been set for completing the audits.
While Texas is pausing new projects, the U.S. data center industry remains expanding. The United States now has over 3,000 operational data centers, with more than 1,500 under construction or planned, primarily in the South and Midwest. Texas' move comes shortly after New York Governor Kathy Hochul temporarily paused certain large-scale data center projects for a similar review.
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