Texas Has 5 New Rules for Data Centers as AI Backlash Grows

Texas Governor Greg Abbott has outlined five key disclosures data centers must reveal to connect to the state grid.

The move comes amid growing public backlash over the rapid expansion of data centers, with state officials seeking greater transparency into how much electricity and water these facilities will require.

What Abbott Wants Data Centers to Disclose

This month, Abbott ordered a pause on data center approvals. The governor directed the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all data centers advancing through ERCOT’s interconnection process. Any center that fails state requirements will be denied a grid connection.

The requirements focus on five areas: public funding, power use, water consumption, community impact, and ownership. Companies must reveal any taxpayer-funded incentives they receive. 

They must detail projected power demand and on-site generation plans. They must also identify water sources, reuse methods, and community measures such as noise and traffic controls.

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New data centers are being paused.Data centers must disclose their plans to:✅ pay their own way✅ provide their own power✅ reuse their own water✅ reduce the cost of electricity✅ & avoid disturbing neighborhoods pic.twitter.com/5T2bzzsoU4

— Greg Abbott (@GregAbbott_TX) August 8, 2026

The scale is large. ERCOT is weighing more than 474 gigawatts of connection requests, over five times the state’s record peak demand. Data centers make up roughly 90% of those requests.

“Any project that fails to comply with the requirements set forth by the PUCT and ERCOT, and by state law, must be denied connection to the Texas grid. Simply put, Texans must come first,” Abbott said.

New York’s Freeze Signals a Wider Backlash

Texas is not alone. New York enacted the first statewide moratorium on new hyperscale data centers in July. 

The pushback is spreading across the country. About a dozen states have proposed data center bans, according to CNN.

Public opposition is also rising. A recent Gallup poll found that 71% of Americans oppose having a data center built in their local area. Separately, a Reuters/Ipsos survey found that 57% would oppose a data center being built in their community.

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