Texas Freezes New AI Data Centers Over Water, Power Concerns

AUSTIN, TX – Texas Governor Greg Abbott has announced that the state had paused approval of new artificial intelligence data-center projects amid growing public concern over their consumption of water and electricity.

The decision marks a sharp shift for Abbott, who had previously sought to make Texas a leading center of the US artificial intelligence industry. It comes as opposition to the rapid expansion of data centers grows across several American states.

“I have pressed pause on any new data center being able to join the operations in the State of Texas,” Abbott told ABC News.

Abbott said projects would have to meet new requirements before being allowed to operate. Developers must disclose their expected water consumption and demonstrate that they will not draw supplies needed by local communities. They must also avoid taking electricity required by consumers, show that their operations will lower power costs and address their impact on local communities.

“These are standards that are now being universally applied by all the data centers in the State of Texas,” Abbott said.

The state’s action comes as the scale of the data-center boom has drawn increasing scrutiny. Texas has more than 300 data centers in operation and at least 200 more in the pipeline, according to an ABC News analysis. Technology companies have invested hundreds of billions of dollars in facilities housing the computer chips and servers needed to run AI systems.

The projects have brought construction work and capital investment, but residents fear they could increase utility bills, consume limited water supplies and affect farmland and local communities. Hundreds of people recently attended a 13-hour protest against two proposed data centers, ABC News reported.

Opposition has crossed party lines and is becoming an issue ahead of the US midterm elections. Abbott blamed the industry for failing to consult affected communities before beginning construction.

President Donald Trump criticized the Texas pause, saying that turning away data centers would be a mistake because the AI industry “could be bigger than oil.” Trump has continued to support the expansion of data centers despite growing community opposition over their impact on electricity, water and local areas.

The issue has also placed political pressure on candidates in Ohio, Michigan and Pennsylvania. Republicans have privately warned that support for data centers could hurt their chances of retaining a Senate seat in Ohio, while a Republican Senate candidate in Michigan has backed a one-year moratorium. (IANS)