Texas Gov. Abbott freezes environmental permits for AI data centers in expanding state power audit

Texas Governor Greg Abbott has frozen new environmental permits for AI data centers, directing the Texas Commission on Environmental Quality to halt issuances. This action follows a previous directive last month to freeze new data center connections to the state grid and initiate an audit of these facilities. The move comes amid public backlash and concerns about the energy and water consumption of data centers, which have rapidly expanded in Texas due to the AI boom. Over 470 gigawatts of data center projects were awaiting connection to the grid, significantly exceeding the state's peak demand. Governor Abbott stated, "Data centers must pay their own way, protect our grid and water, and complete the (audits)." This reflects a shift in policy as governors, including Abbott, are now tightening restrictions on data centers after initially attracting such investments.