Texas Governor Abbott halts all state-issued permits for data centers until grid audit is complete

Texas Governor Greg Abbott has halted the issuance of new permits for data centers in the state until regulators complete a comprehensive audit of the energy-intensive facilities. The directive from the Republican governor effectively freezes all state-issued permits to data center developers, who have been drawn to Texas due to its abundant electricity, land, and business-friendly environment.

The surge in data centers in Texas, driven by the artificial intelligence boom, has alarmed citizens and raised concerns about the facilities' impact on the grid, water consumption, and AI technology in general. Abbott's decision to freeze the connection of new data centers to the state grid comes after he ordered the audit of data center power use, tax incentives, and water consumption.

The Electric Reliability Council of Texas, which manages the state grid, is currently conducting the audit. Abbott emphasized that Texans must come first, and data centers must pay their own way, protect the grid and water, and complete the audits.