Abbott orders permit halt

Texas Gov. Greg Abbott ordered the state's environmental regulator to halt all data center permits until the Electric Reliability Council of Texas completes an audit of the existing waitlist.

Moratorium expanded from August

Abbott originally imposed a moratorium on new data center grid approvals in August. Monday's directive expands that moratorium to environmental approvals through the Texas Commission on Environmental Quality.

Texas risks losing market lead

Texas was on track to surpass Virginia as the state with the largest data center market in the world by the end of the decade, according to a February report from JLL.

Massive pipeline at risk

BloombergNEF found that almost twenty percent of the U.S.'s two hundred fifty three gigawatt data center pipeline would be at risk with Texas's pause, or nearly fifty gigawatts in proposed capacity.

Election year backlash

Data center buildout has become a breakout issue in the two thousand twenty six midterm election. An NBC News poll found sixty four percent of Americans would be less likely to vote for a candidate who supports building local data centers.

Abbott reverses course on AI hub

Abbott, running a tight race for his fourth term against state Rep. Gina Hinojosa, had claimed Texas would be the epicenter of AI development. He will now work with the Legislature to eliminate financial incentives for data centers.

“Next session, Governor Abbott will work with the Legislature to eliminate any financial incentives for data centers.”