Texas widens its data center crackdown by freezing key permits - USA Today

The freeze covers every data center seeking new permits in Texas, not just projects already under construction. It builds on directives Abbott issued earlier this summer aimed at slowing the industry's expansion, as data centers have strained power grids and water supplies in fast-growing parts of the state. For West Texas, where land is cheap and companies have eyed the region for server farms, the pause means any new project needs a permit that simply isn't available right now.

Abbott isn't stopping at a temporary freeze either. He wants the legislature to take up new data center laws in 2027, including pulling back tax incentives the state has used to lure these projects for years.

For regular people here, this is about what's under the ground and coming out of the tap. Texas has watched electricity and water supplies get tighter as tech companies race to build data centers. A halt on permits buys time for regulators to figure out whether the grid and water systems can actually handle more of these facilities before approving another one.

Texas spent years rolling out the red carpet for data centers. Now the state won't even process their paperwork.