Abbott’s directive also seeks to increase scrutiny of measures that data centers are taking to “reduce impacts on neighboring property owners and communities, including noise mitigation, light controls, setbacks, traffic improvements, emergency response coordination and other community protection measures.”
But the directive conspicuously neglects to mention local air pollution and greenhouse gas emissions associated with data centers. Nonprofit newsroom Floodlight has reported that AI companies used a local permit loophole in Texas to install gas-powered turbines and backup diesel generators on site at new data center campuses—all without requiring more extensive environmental reviews or outreach to local communities.
Notably, the Texas pause on data center grid connections does not apply to data center projects that are building their own on-site power generation to get up and running as fast as possible. That “behind-the-meter power” strategy has become increasingly common among tech and AI companies like Meta, Microsoft, Amazon, Oracle, OpenAI, and Anthropic, according to research by market intelligence platform CleanView.
Such behind-the-meter power typically relies on natural gas. But with lengthy order backlogs for combined-cycle gas turbines, CleanView says data center developers are turning to alternative sources, such as “mobile gas generators strapped to semitrucks” and “aeroderivative turbines originally designed for aircraft and warships.”
Texas leads all US states in total announced behind-the-meter capacity for data centers by having 40 gigawatts of such announced capacity. That factor is driven by the Texas Permian Basin gas supply and “extensive pipeline infrastructure” along with the “state’s permissive regulatory environment,” according to CleanView.
The national resistance to data centers
Despite the oversight gaps, the Texas moratorium on data center approvals “throws a massive wrench into ERCOT’s plans to bring data centers online,” according to E&E News. The Texas grid operator has been seeking to connect data center projects to the grid in groups, with notifications for the coveted first group known as “Batch Zero” planned to go out by the end of this week. But ERCOT officials said they will postpone the Batch Zero process while working with state regulators to carry out Abbott’s directive.