Escalation: Abbott Calls for Data Center Restrictions

Greg Abbott shifted from booster to skeptic and called for sweeping new limits on data centers in Texas. He is pushing to repeal state tax incentives, add tighter rules on the industry, and curb construction in rural communities.

He has told state regulators to ensure data centers do not take water needed by towns or power needed by the grid, to hold down electricity bills, and to make operators pay for their own substations and lines. An audit he ordered on August 3 has effectively paused approvals for new grid connections while it runs.

The change puts tax breaks and rural siting many projects expected in doubt, and forces developers to budget for grid upgrades themselves. With only 30% of Texans saying they would support a data center in their community, proposals now face a tougher path.

AI-synthesized from multiple reported sources