Texas Governor Greg Abbott has moved to slow data‑center construction ahead of midterm elections, and the policy shift is already affecting developers. Abbott has shifted from a pro‑development stance to a skeptical one, prompting developers to consider relocating projects to Utah, Georgia and Iowa. The change risks slowing Texas’s data‑center growth; the state had been positioned to overtake Virginia as the largest global hub. Abbott has ordered the state environmental regulator to stop issuing

2026-10-29

Texas Governor Greg Abbott has moved to slow data‑center construction ahead of midterm elections, and the policy shift is already affecting developers. Abbott has shifted from a pro‑development stance to a skeptical one, prompting developers to consider relocating projects to Utah, Georgia and Iowa. The change risks slowing Texas’s data‑center growth; the state had been positioned to overtake Virginia as the largest global hub. Abbott has ordered the state environmental regulator to stop issuing any data‑center permits until the state grid operator completes evaluations of applicants seeking power interconnection, and those applicants are currently awaiting approval to connect to the grid.