Texas Governor Requires Local Approval for Data Centers

Texas Governor Greg Abbott announced that data center developers will now be required to secure approval from local communities before operating in the state, marking a significant shift in policy amid growing backlash against the rapid expansion of artificial intelligence infrastructure. In an interview on ABC's This Week, Abbott stated that companies "dug their own grave" by failing to collaborate with local governments and residents, leading to the opposition they now face.

Abbott outlined a new framework that effectively pauses new data center operations until they comply with a set of guidelines. These standards require facilities to identify their water usage, ensure they do not draw power from the strained Texas grid, contribute to lowering electricity costs for consumers, and avoid disturbing neighborhoods or rural communities. The governor emphasized that no data center will be permitted to operate until it meets these requirements.

The announcement represents a reversal for Abbott, who previously championed Texas as the "epicenter of AI development." In November 2025, he stood alongside Google to announce a $40 billion investment in three data center campuses. However,...