Governor Greg Abbott paused approvals for new Texas data centers pending comprehensive resource audits.

Abbott stated the industry dug its own grave by expanding rapidly without securing local community support.

The administration cited growing concerns over the industry's heavy strain on the state's electric grid and water supplies.

This policy reversal follows Abbott's previous efforts to brand Texas as the global epicenter of AI development.

The freeze addresses a bipartisan backlash over rising utility costs and environmental impacts across multiple states.