Just weeks from the US midterm elections on November 3, Texas governor Greg Abbott is courting voters concerned about rapid data centre expansion. Fears over grid instability and rising electricity costs have made the industry a wedge issue, prompting Abbott to direct the Texas Commission on Environmental Quality to halt all data centre permits pending a grid audit. The Republican governor, once a vocal supporter of data centres alongside US President Donald Trump, now faces mounting backlash from rural and suburban voters.

His rival, Democrat Gina Hinojosa, is gaining ground in the gubernatorial race. Political analyst Joshua Blank of the University of Texas at Austin notes the issue's electoral significance. The permit freeze adds uncertainty for developers, with some already disputing their exclusion from the state grid operator’s “base load” approvals announced on September 3.

Lawyers warn that developers may seek projects elsewhere, as demonstrated by Christopher Miglino, CEO of Axe Compute, who shifted focus to gas turbines outside Texas. “Given this political uncertainty combined with the rising cost of doing business in Texas, it’s possible that some developers may opt to pursue projects in other markets,” said Jared Berg, a Houston-based partner at Bracewell law firm.