Texas Governor Greg Abbott has placed a moratorium on new data center construction due to concerns over power grid strain and water usage. This marks a shift from his previous support for the industry, which he once called the "epicenter of AI development."
Governor Abbott's moratorium signals a growing tension between the rapid expansion of AI infrastructure and the capacity of existing resources like power grids and water supplies, potentially impacting future tech investments in the state.
Texas Governor Greg Abbott has instituted a moratorium on the construction of new data centers, citing concerns over the strain on the state's power grid and water usage. This policy shift represents a significant change from Abbott's previous stance, as he had previously championed the growth of data centers in Texas, even declaring the state the "epicenter of AI development" less than a year ago when announcing a $40 billion investment by Google.
According to the Texas Tribune, the state currently hosts 335 data centers, with an additional 248 facilities in various stages of development. The new guidelines implemented by Abbott's administration require companies to clearly identify their water usage and to avoid drawing power from the Texas power grid, while also aiming to lower electricity costs for consumers.
During a recent interview, co-anchor Jonathan Karl questioned Abbott about the rapid approval of power plants for Meta data centers, with one approved in 20 days and another in just two days. Abbott declined to label these approvals as mistakes, stating that companies do not require state approval to begin data center operations under current law. However, he noted that eventually, approval to connect to the power grid would be necessary.