Texas hits pause on 1,800 data center projects to scrutinize power and water demands

[Skye Jacobs]

What just happened? Texas has put a hold on new data center approvals that require access to the state's grid, a move that could slow a long list of projects already waiting in line. Governor Greg Abbott has ordered the Public Utility Commission of Texas and ERCOT to pause approvals until the agencies complete an audit of applicants, a move that could stall a large backlog of projects seeking to connect.

The state wants more information before granting access. Abbott said applicants must provide tax break details, power use and generation data, water use and cooling plans, steps to reduce community impact, and facility ownership information. Any project missing that information will not be allowed onto the grid.

"Our top priority is to protect Texans' safety and quality of life," Abbott wrote. "Any project that fails to comply with the requirements set forth by the PUCT (Public Utility Commission of Texas) and ERCOT (Electric Reliability Council of Texas), and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first."

The review appears to follow a PUCT survey that most companies ignored. The agency said it asked 377 data center firms for information on water and power use, but only 28 responded.

The order isn't a statewide ban, but it still affects a major chunk of the projects in ERCOT's queue. More than 1,800 projects are waiting for approval to connect, and about 90% of them are data centers. Together, those applications could require 474 gigawatts, which is far above ERCOT's current peak demand.

Even so, the directive does not hit every project in Texas. Data centers outside ERCOT's territory, including those in El Paso, are not covered. Projects that bring their own power are exempt too, since they don't need to connect to the grid.

The move drew criticism from opponents pushing for the legislature to step in with stricter rules. Texas Agriculture Commissioner Sid Miller called the directive "all hat and no cattle" on the Texas Department of Agriculture's official Facebook page, saying, "Texans need laws with teeth, not another press release designed to make it look like something is being done while hyperscale projects continue moving forward."

State Rep. Gina Hinojosa, who is challenging Abbott in the 2026 governor's race, dismissed the move as too little, too late. She said Abbott has spent months promoting Texas as a friendly place for data centers, and argued his new pause wouldn't convince anyone the state is suddenly cracking down.

The Texas move is narrower than New York's statewide data center moratorium, but it still adds a major hurdle for developers. For an industry built around fast buildouts and heavy power demand, the pause could have immediate effects.

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Texas hits pause on 1,800 data center projects to scrutinize power and water demands

 

[maxxcool7421]

Gee it is like their FRAGILE PRIVATE CRASHES EVERY WINTER AND SUMMER micro-grid cant make enough energy...

 

[Linux Mint Xfce]

Let’s go Texas, I live there!

 

[The Talking Tech]

Let’s go Texas, I live there!

My sincere condolences!

 

[p51d007]

These AI Data centers should be required to have their own source of electricity & water.
Micro-nuclear power, solar, wind, whatever they want as long as it isn't dependent on the
power grid. The national power grid is fragile enough, without adding AI data centers, and
thousands of EV's.
And if they want to build them, put them out in "the desert" away from homes and communities.

 

[Mr Majestyk]

God that low life Abbott must be really feeling the heat to take this action.

 

[AlvinTheNerd]

The desert is *not* a waste dump. It is more sensitive than most environments and the water use would have more impact (human and otherwise) not less because every drop has to do more out in the desert.

 

[scavengerspc]

It really is great to hear, but I have done a TON of work in Texas over the years.
This may just be for appearances though, because when it all comes to decision time
Texas officials always follow the money.

 

[Linux Mint Xfce]

My sincere condolences!

What do you mean about that bub?

 

[pnntmp]

Yet another manipulative article.
Texas hits pause .. Jeez

They are merely requesting basic information in order to assess the overall demand, which is a perfectly reasonable thing to do. Nothing is paused.
As the information is readily available, providing it will not lead to any notable delays, not to mention that anyone bringing their own power is not affected in any way.

 

[whateversa]

Aren't there still homes in the USA that are now uninhabitable because of 24/7 noise from newly built data centers? How about shutting those down until they stop all noise.

 

[dangh]

Yet another manipulative article.
Texas hits pause .. Jeez

They are merely requesting basic information in order to assess the overall demand, which is a perfectly reasonable thing to do. Nothing is paused.
As the information is readily available, providing it will not lead to any notable delays, not to mention that anyone bringing their own power is not affected in any way.

"The agency said it asked 377 data center firms for information on water and power use, but only 28 responded"

I wouldnt tell this is readily available...

 

[JamesBlond]

First of all no water is needed to cool, this can be done simply through thermodynamics, basic science shows you can do it without water.
Power, every Data centre should have its own power grid, and all that power should come through the cheapest power on the planet and cleanest, Nuclear. Simple, costal nuclear plants work the best

 

[pnntmp]

"The agency said it asked 377 data center firms for information on water and power use, but only 28 responded"

I wouldnt tell this is readily available...

Of course the information is available, they simply didn't care to reply the first time, now they'll have to.
Can you imagine having a datacenter project, and no idea of power or water use?

 

[Theinsanegamer]

First of all no water is needed to cool, this can be done simply through thermodynamics, basic science shows you can do it without water.
Power, every Data centre should have its own power grid, and all that power should come through the cheapest power on the planet and cleanest, Nuclear. Simple, costal nuclear plants work the best

This comment reeks of ignorance of how data centers work. Evaporative water cooling is far more energy efficient then trying to keep a data center cool with just AC. There are limitations to that kind of system.

And do you really want thousands of private microgrids? Using nuclear, at that,? Surely, if I can trust anyone with nuclear power, it's corporations that walk away and let things rot the moment they don't make money.

There's a reason we moved away from factories having their own power generators.

 

[Loadedaxe]

First of all no water is needed to cool, this can be done simply through thermodynamics, basic science shows you can do it without water.
Power, every Data centre should have its own power grid, and all that power should come through the cheapest power on the planet and cleanest, Nuclear. Simple, costal nuclear plants work the best

“Basic thermodynamics” tells us that the heat must be transferred somewhere...it doesn’t magically make it disappear. Data centers can use air or closed loop cooling with little onsite water consumption, but in the Texas heat those systems can require considerably more electricity. Many facilities use evaporative cooling precisely because it is more energy efficient, although it consumes water.

Simply saying every data center should simply build its own nuclear grid ignores licensing, construction costs, transmission, backup capacity and the many years required to build a plant. Nuclear plants, especially coastal ones, also require enormous cooling systems, so you haven’t eliminated the water issue...you’ve moved it from the data center to the power plant.

That is exactly why Texas is reviewing these projects before approving them. ERCOT reportedly has about 474 gigawatts of proposed new demand awaiting review, roughly 90% associated with data centers and more than five times Texas current peak demand. You don’t solve an infrastructure problem of that scale by typing “thermodynamics and nuclear...simple.”

 

[dangh]

Of course the information is available, they simply didn't care to reply the first time, now they'll have to.
Can you imagine having a datacenter project, and no idea of power or water use?

They didn't want to reply, and we can only can guess why. Every contractor always provide all documents together as a package, and it is concerning those exact info has been not provided in majority of cases. Sure we will see if she when will they be provided and how will that affect the decision. Giving it is Texas, we can guess decision, and probably won't be best for citizens there.

 

[airbornex]

Only 28 out of 377 companies bothered responding to the water/power survey. That response rate alone tells you how much these developers expected anyone to actually check their homework.

 

[BadThad]

Building a data center? Then you MUST build your own powerplant! Pretty simple.

 

[BadThad]

What do you mean about that bub?

Ignore, ultra-left TDS fools that equate the great state of Texas with "Trump" so they hate the state automatically. PITYFUL

 

[toooooot]

It is time to create new ways to cool data centers. Stop wasting water.

 

[Loadedaxe]

Building a data center? Then you MUST build your own powerplant! Pretty simple.

“Pretty simple” only works when you ignore everything that makes it complicated.

A data center cannot just build a power plant and flip a switch. It still needs permits, fuel, cooling, transmission equipment, grid synchronization, backup capacity, maintenance crews and years of construction. Even a privately owned plant would normally remain connected to the wider grid for reliability and emergency support.

By this logic, every steel mill, hospital, semiconductor factory and shopping center should build its own power station too. Large users can help fund new generation, but pretending every data center should operate as its own independent electric utility is not a serious solution...it is a slogan from someone who does not understand how power infrastructure works.

 

[GrayDragon]

What do you mean about that bub?

I second the condolences, for what it's worth. The last great Texan in my book was LBJ.

 

[scavengerspc]

By this logic, every steel mill, hospital, semiconductor factory and shopping center should build its own power station too.

What's ironic about that logic is those 4 things combined will only draw about a third to half the power a data center will.

I second the condolences, for what it's worth. The last great Texan in my book was LBJ.

LBJ would rampage if he saw what comes out of Texas today.

Ignore, ultra-left TDS fools that equate the great state of Texas with "Trump"

You don't have to be on the left to be aware of the
Trump Dementia Symptoms.
Dude hasn't spoken a clear sentence since placing his last McDonalds order.

 

[JamesBlond]

“Basic thermodynamics” tells us that the heat must be transferred somewhere...it doesn’t magically make it disappear. Data centers can use air or closed loop cooling with little onsite water consumption, but in the Texas heat those systems can require considerably more electricity. Many facilities use evaporative cooling precisely because it is more energy efficient, although it consumes water.

Simply saying every data center should simply build its own nuclear grid ignores licensing, construction costs, transmission, backup capacity and the many years required to build a plant. Nuclear plants, especially coastal ones, also require enormous cooling systems, so you haven’t eliminated the water issue...you’ve moved it from the data center to the power plant.

That is exactly why Texas is reviewing these projects before approving them. ERCOT reportedly has about 474 gigawatts of proposed new demand awaiting review, roughly 90% associated with data centers and more than five times Texas current peak demand. You don’t solve an infrastructure problem of that scale by typing “thermodynamics and nuclear...simple.”

I never said its a complete solution, but as I have built cooling systems without water, I know it works. 4m below ground cools air rapidly so long as you don't go too far down, there is a large area from 4m-10m, 6m in between cool the air fast. why not on a small island on the Great lakes, directly on stilts??? cold water in and out. too little thought, just lots of money goes into these