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Greg Abbott freezes Texas data center construction

If Texas—the market-friendly, energy capital of the world—is willing to issue a moratorium on these centers, expect other states to follow.

Reason By Jeff Luse Captured Aug 4, 2026, 7:24 PM
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There seem to be very few issues that Republicans and Democrats can agree on these days, but disdain for data centers sure is one of them.

Greg Abbott halted all new data center construction in the Lone Star State, pending "a comprehensive verification and audit" of all new data center projects hoping to connect to the state's power grid.

As E&E News reports, the order will require prospective data centers to give "information about their proposed water use, tax breaks they receive, what cooling technologies they're using and who owns the projects" to the Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT)—which oversees about 90 percent of the state's grid.

Any project that doesn't comply "must be denied connection to the Texas grid," Abbott wrote in a letter to PUC Chairman Thomas Gleeson and ERCOT President and CEO Pablo Vegas.

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