Leaders of one of the world’s largest data center companies say they support Texas Governor Greg Abbott’s efforts to reign in the industry’s explosive growth in the state. On Monday, Governor Abbott issued a directive blocking new data centers from connecting to the Texas power grid until state regulators complete a comprehensive audit of the facilities. QTS operates dozens of data centers across the US and Europe, including several here in Texas. Leaders say that they want to be a part of the conversation about developing guardrails for the industry to make sure these centers are built responsibly, protecting resources, and working with the communities that they operate in. There are questions about how this audit will affect the hundreds of data centers that are already in the works.
Physical construction can still continue during the pause. Developers just cannot get final approval or tie into the grid and data centers providing their own power as the governor has called for them to do are not impacted. Governor Greg Abbott reacted to the announcement from QTS in a social media post today, writing, “Every day data centers are announcing their compliance with the guidelines and guardrails I have put on data centers. The governor previously called for data centers to pay for the costs of their electric infrastructure, lower surrounding residents energy bills when they do connect to the grid, and that they not be built around neighborhoods. It is not clear when state regulators will start the audit or finish it.
While this pause does bring some uncertainty for the data center developers, some the industry say that they are more concerned about potential data center legislation that will no doubt come in the 2027 legislative session.
