Tech news in 3 minutes

Texas data center pause

9 h ago

Texas Gov. Greg Abbott ordered a halt on all data center-related permits until ERCOT completes an audit, expanding a previous moratorium to include environmental approvals through the Texas Commission on Environmental Quality. The directive, issued Monday, builds on an August pause on new grid connections and threatens Texas’s trajectory to surpass Virginia as the world’s largest data center market by decade’s end, per a JLL report. BloombergNEF analysts found nearly 20% of the U.S. 253-GW data center pipeline—about 50 GW—is at risk, potentially causing over $8 billion in revenue losses by Q1 2027. Advocacy group Data Center Watch reported $68 billion in new data center development was delayed or canceled last quarter due to local pushback, a risk now bleeding into financial markets. Anthropic’s upcoming IPO is expected to cite negative public opinion toward AI and data centers as a risk factor. The data center buildout has become a breakout issue in the 2026 midterm election; an NBC News poll found 64% of Americans would be less likely to vote for a candidate supporting local data centers. Abbott, in a tight reelection race against state Rep. Gina Hinojosa, reversed his 2025 claim that Texas would be the “epicenter of AI development.” His office stated the governor will work with the legislature to eliminate financial incentives for data centers. The TCEQ must report compliance by Oct. 19.