NEWS: Texas and California step up data center guardrails.

In Texas: Gov. Greg Abbot is adding a layer to his pause on data center approvals. The state must now halt environmental permitting until ERCOT finishes its audit of data center project applications. And that’s not all—Abbott said he will work with the legislature next session to “eliminate any financial incentives for data centers." 

In California: Gov. Gavin Newsom signed a package of bills that will require data centers to: 1) bring new clean energy onto the grid, 2) cover the cost of upgrades, and 3) demonstrate that projects “meet state standards on energy, water, and fuel consumption.” He also vetoed a bill that would have created more oversight for the PUC, saying it would cost too much and would undermine the work of the Public Advocate's Office.  

Why now? Ahead of the midterm elections, public opposition to data centers is growing. Now, 75% of Americans oppose local data center development, according to recent polling from Heatmap. And to power all of those data centers in the next few years? We’re short “six New York Cities” worth of electricity, Morgan Stanley estimates.