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4h ago

Texas Halts New Data‑Center Grid Connections as Local Bans Multiply

The state is requiring audits of proposed facilities’ energy and water use.

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Shutterstock / Futurism
People across Texas are struggling to find information about proposed data center projects popping up in their neighborhoods, like Mason McCallister, center, who has been on a crusade to get information. Meanwhile, local officials and even state elected leaders say they need more information to regulate the growing industry.
Shutterstock / Futurism

Overview

  • Gov. Greg Abbott ordered a temporary pause on new data‑center hookups to the Texas grid in early August so regulators can audit companies’ expected electricity and water use.
  • President Donald Trump criticized the pause as a mistake and urged states to welcome data centers for jobs and investment.
  • Major tech firms including OpenAI, Google, Amazon and Meta have said they will comply with Texas’ conditions and have offered to fund power or water infrastructure.
  • Local moratoriums and bans have surged, with reporting that more than 500 restrictions were in place nationwide, slowing approvals and shifting fights to counties and states.
  • The move highlights a broader policy battle over who will pay for multi‑year grid and generation upgrades and is prompting new federal, state and lender scrutiny that could delay projects and affect local costs.