Texas Pauses New Data Centers, Tightens Rules for Incoming Facilities
Texas halts new data center approvals, requiring them to cover power, water, and neighborhood impact, as corporate relocations continue.
Texas has temporarily halted approvals for new data centers while it introduces stricter operational requirements, Governor Greg Abbott announced. In a statement on X, Abbott said incoming facilities must now disclose plans to "pay their own way, provide their own power, reuse their own water, reduce the cost of electricity, and avoid disturbing local neighborhoods."
The move comes as Texas continues to attract a significant number of corporate relocations. In an April blog post, Abbott highlighted that since 2020, more than 100 companies have moved to the state, with 40% coming from California. He also noted that eight of the ten Fortune 500 companies that relocated to Texas in the last six years were from California.
Abbott attributed the influx to state policies, including no personal or corporate income taxes, streamlined business filing, and incentive-backed grants. "Texas actually wants you to succeed," he said.
Notable relocations include Charles Schwab, Tesla, HP, X, Chevron, and Oracle, which moved its headquarters from Silicon Valley to Austin in 2020. More recently, Chevron announced a move to Houston in 2024, and the New York Stock Exchange said it would shift its Chicago branch to Dallas.
Abbott also cited Site Selection Magazine ranking Texas as the top state for business in 2025, with over 1,400 location and expansion projects. "Texas is where the future of global business and trade is being built," he added.