Texas Governor Greg Abbott has put a pause on the approval of new data centers in the state, according to Fox 26 Houston. The station reported that the governor says the moratorium was necessary, and that at this point an audit will be conducted before the state moves further.
One area of the review is whether developers are paying to build these data centers themselves or are relying on state and local tax incentives, the station reported.
Another is resource drain, according to Fox 26 Houston. The review looks at whether the facilities generate their own power and use water-efficient cooling systems, or instead rely on the ERCOT grid and draw down local water supplies.
The station reported that ERCOT is always top of mind in the state, and that many municipalities are already making upgrades to their water infrastructure and systems, raising questions about how much more the data centers would pull.
A third area is community impact, according to Fox 26 Houston. That includes what specific measures a data center owner is taking to mitigate noise, light pollution and traffic in local neighborhoods, an issue the station noted has been raised in other states as well.
The station reported that Abbott has been facing intense bipartisan pressure from state leaders. One lawmaker said he had called on the governor to convene a special session to deal with data centers, and, before that, had called for a one-year moratorium so the legislature could meet during its regular session and put new laws, regulation and oversight in place before any more construction continues.
According to Fox 26 Houston, a lot of these data centers are going up in rural areas. The station said the pause means the state will at least be able to get an audit before moving further.