Overview
- This month Governor Greg Abbott ordered the Public Utility Commission of Texas and ERCOT to pause new grid connections for data centers and run a comprehensive audit, leaving roughly 1,800 Texas projects tied to about 474 gigawatts of interconnection requests stalled.
- Polls show roughly 70% of Americans oppose building large AI data centers near where they live, driving governors and state legislatures in multiple states to impose moratoria, roll back tax subsidies, or add new energy-use charges.
- Local opponents cite specific harms: heavy electricity and water use that can raise utility costs, continuous generator noise, limited long-term jobs, and secretive incentive deals that restrict community control over siting and permits.
- Some developers have agreed to new state standards on reporting, power sourcing and community payments while at least one prospective project abandoned plans rather than comply, illustrating how companies are shifting tactics to keep projects viable.
- The clash has clear political effects: President Trump defends rapid expansion, but midterm candidates and party strategists are distancing themselves because the issue is proving electorally toxic in key races and could force companies to pay for grid upgrades or face multi-year delays.