Data Center Backlash Brings Thousands of Projects to Halt

Gov. Greg Abbott said data center developers "dug their own grave" by skipping community engagement. He defended his pause on new data center grid approvals in a Sunday interview on ABC's This Week.

• Texas has 335 data centers, with at least 248 more under development.
• 500% increase in projected peak electricity demand is being tracked by ERCOT.
• Fewer than 10% of data centers were complying with state power and water reporting laws.
• One Meta data center power plant was approved in two days before the moratorium.

Why it matters: The moratorium affects projects seeking grid connections — not facilities generating their own power. Abbott says Texans face real risks from unchecked energy and water consumption.

• President Trump called Abbott's pause a "mistake," saying communities that reject data centers lose significant economic investment.
• Abbott's stance is a sharp turn from November 2025, when he declared Texas the "epicenter of AI development" and announced a $40 billion Google investment.

How 42 sources split on this story

Where they split: The central dispute is whether Abbott's moratorium is responsible grid protection or an inconsistent reversal that undermines Texas's pro-business reputation.

What’s next: A statewide audit will examine developer electricity use, water consumption, cooling systems, and community impact plans.

• Abbott's administration requires new centers to secure local community approval before connecting to the grid.
• Will the audit result in permanent restrictions or a return to Abbott's earlier pro-investment posture?
• How will the data center fight affect Abbott's 2026 re-election race against Democrat Gina Hinojosa?