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Texas Halts Data Center Permits

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Less than a year ago, Gov. Greg Abbott welcomed data centers. Now he is confronting concerns about the projects even among fellow Republicans. Gov. Greg Abbott of Texas ordered state environmental regulators on Monday to pause data center permitting processes.

Texas is effectively halting development of new data centers as Gov. Greg Abbott, a Republican running for re-election, confronts growing opposition to the projects and concern over their environmental impacts. Mr. Abbott on Monday ordered state environmental regulators to pause their review of data center permit applications until audits can be performed to evaluate how the projects affect the power grid and water supplies. The action expanded scrutiny of data centers planned in the state, including on a growing number of projects designed to run on their own sources of power, separate from the grid.

Dozens of new gas-fired power plants have been proposed to support data center projects across Texas, Appalachia and the Mountain West, a boom that could cause air pollution to surge in those regions. Texas had previously welcomed the data center industry and was forecast to drive much of the growth in the nation's computing capacity over the coming years. But Mr. Abbott's shift underscores rising concerns in the communities living near the hulking facilities.

"Simply put, Texans must come first," Mr. Abbott said in a statement. "Data centers must pay their own way, protect our grid and water," and complete the audits, which he ordered in August as pressure against data centers began to mount, even within his own party.