Texas Governor Halts Data Center Permits Amid Environmental and Grid Concerns
Texas Gov. Greg Abbott has ordered a halt to environmental permits for new data centers until an audit of the existing waitlist is completed by the Electric Reliability Council of Texas (ERCOT). This directive expands on an August moratorium that paused grid approvals, signaling continued regulatory scrutiny over rapid data center growth in the state. The move comes as data center development has become a contentious political issue ahead of the 2026 midterm elections. Abbott faces pressure from constituents and environmental groups concerned about energy use and infrastructure strain. A recent NBC News poll found that 64% of Americans would be less likely to support candidates who back local data centers, complicating his re-election bid. Texas was projected to surpass Virginia as the world's largest data center market by decade’s end according to a JLL report from February. However, Abbott has shifted stance since earlier claims that Texas would become an AI development hub due to tax incentives and projects like OpenAI’s Stargate.
Topics: data centers energy policy environmental permits Texas politics