Texas is on track to become the country’s largest data center market. But the governor has effectively issued a pause on new centers until the state can audit their energy and water usage.
Transcript
SCOTT DETROW, HOST:
Texas has the fastest-growing market for data centers in the country. It’s on track to lead the nation in the industry. But Governor Greg Abbott recently announced a pause on new data centers until the state can conduct a thorough review of their impact on the state’s resources. From member station Houston Public Media, Natalie Weber tells us more.
NATALIE WEBER, BYLINE: In the first few months of this year alone, nearly 200 data centers and other large energy consumers asked to join Texas’ power grid. Large energy consumers are requesting five times the amount of energy used to power the entire state during record-breaking demand. About 90% of those requests are from data centers, according to the Electric Reliability Council of Texas, the agency that manages the energy grid. Governor Abbott wants state regulators to collect information about new data centers’ water and energy usage, any government support they receive and their impact on nearby communities. It’s unclear how long the audit could take.
BETH GARZA: It absolutely is very disruptive. And frankly, that’s probably the point.
WEBER: That’s Beth Garza, an energy consultant who previously served as the independent watchdog for Texas’ power grid operators. She questions whether the governor and state agencies can enforce Abbott’s latest directive on data centers without new state laws.
GARZA: Unless he’s willing to call a special session, which people are asking him to do, I’m not sure how you impose the requirements that his edict seems to want to impose.
WEBER: The governor’s campaign press secretary, Eduardo Leal, said in a statement that Abbott, quote, “is taking the necessary action to protect Texans.” President Donald Trump called the governor’s decision a mistake in an interview with Punchbowl News last week. But Texas State House Representative Gina Hinojosa says Abbott needs to call a special legislative session. The Democratic lawmaker is running to unseat him in November.
GINA HINOJOSA: The only way we can have any assurances that the people will be protected is if there is a moratorium until the legislature can meet and pass into actual law real protections for people.
WEBER: The legislature only meets every other year, and its next regular session isn’t scheduled to meet until January. In a statement, the Data Center Coalition, an industry group, called for state regulators to, quote, “move swiftly” to complete the audit. Rice University political scientist Mark Jones says, even though there’s controversy about the benefits of data centers, they contribute to the Texas economy.
MARK JONES: The governor does have to balance the intense opposition of a small but vocal group of Texans combined with unease among a larger group of Texans with the actual economic benefits that data centers provide.
WEBER: Data center opponents could face an uphill battle in the next legislative session, Jones says, as the industry hires top lobbyists. Still, he says, the governor’s backing could give these communities a boost. For NPR News, I’m Natalie Weber in Houston.
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