Greg Abbott reverses course on data centers as Texas race tightens
Texas Governor Greg Abbott has suddenly slammed the brakes on new AI data centers, a reversal driven by angry voters and a re-election race that has gotten uncomfortably close.
- Abbott ordered a pause on new data center construction, freezing roughly 1,800 planned projects.
- The turnaround came after voters — including lifelong Republicans — revolted over rising electric bills, water use, and noise.
- Polls now show his Democratic opponent Gina Hinojosa within a point, in a state where Republicans normally win by 9 to 12 points; Cook Political Report moved the race from solid to likely Republican.
- Abbott had spent the past year courting the industry, touting Texas as the center of AI development and a $40 billion Google investment, with tax breaks and approvals granted in days.
- The new rules require data centers to disclose water use, stay off strained parts of the grid, and avoid raising power costs for residents — but companies say they will comply only later, meaning nothing binds them now.
Outlook: Expect the pause and the tough talk to last through the election, with real doubt about whether the guardrails survive past it.