# Texas and California Both Crack Down on Data Centers

- URL: https://twotakes.us/stories/texas-and-california-both-crack-down-on-data-centers
- Published: 2026-09-25T01:12:17.559844+00:00
- Topics: data-centers, artificial-intelligence, energy-policy, environmental-regulation, state-government

## What the left says
- California's package of seven bills forces data center operators to bear the true costs of their water and electricity use rather than shifting those expenses onto ratepayers and residents.
- Newsom's reversal reflects growing public backlash against an industry that has strained local grids and water supplies while offering communities little in return.
- Requiring data centers to disclose water and energy usage brings transparency to an industry that has historically avoided scrutiny, with compliance rates as low as 28% in some states.
- Regulating AI infrastructure growth is consistent with broader efforts to ensure technology companies are held accountable for their environmental footprint.

## What the right says
- Abbott's moratorium protects the reliability of the Texas power grid by pausing new data center approvals until ERCOT completes a full audit of the backlog of projects awaiting connections.
- Halting environmental permits closes a loophole developers were using to keep projects moving even while grid capacity questions remained unresolved.
- Enforcing existing water-use survey requirements is about holding companies accountable to laws already on the books, not imposing new burdensome regulation.
- Pausing growth temporarily to get accurate data protects the long-term interests of the state's energy independence and avoids overbuilding beyond what the grid can support.

## Common ground
- Texas and California both paused or restricted new data center development in response to strain on power grids and water systems.
- Both governors are responding to bipartisan public concern about data centers' resource consumption outpacing infrastructure capacity.
- Nearly 20% of the nation's 253-gigawatt data center pipeline is now at risk due to regulatory pauses, according to BloombergNEF analysis.
- Both states agree that data center operators should be required to accurately report their water and energy usage.

## Sources
- [AllSides](https://www.allsides.com/news/2026-09-22-0700/technology-finally-something-california-and-texas-can-agree-regulating-data-centers) (Center)
- [AllSides](https://www.allsides.com/news/2026-09-22-0700/technology-gov-greg-abbott-broadens-moratorium-data-center-approvals-include-environmental-permits) (Center)
- [AllSides](https://www.allsides.com/news/2026-09-22-0700/technology-newsom-clamps-down-california-data-centers-voters-turn-against-industry) (Center)
- [Breitbart](https://www.breitbart.com/tech/2026/09/22/gov-abbott-halts-texas-environmental-permits-for-data-centers-until-audit-completed/) (Unknown)
- [New York Times](https://www.nytimes.com/2026/09/23/podcasts/the-headlines/trump-greenland-texas-data-centers.html) (Lean Left)
- [Washington Post](https://www.washingtonpost.com/politics/2026/09/23/how-have-data-center-politics-changed-look-texass-republican-governor/) (Lean Left)
- [Axios](https://www.axios.com/local/chicago/2026/09/23/chicago-12-month-moratorium-data-centers-ai-johnson-pritzker-trump) (Lean Left)
- [Axios](https://www.axios.com/2026/09/23/trump-board-of-peace-gaza-reconstruction-plan) (Lean Left)
- [PBS NewsHour](https://www.pbs.org/newshour/politics/voters-dont-like-data-centers-they-really-dont-like-them-close-to-home) (Lean Left)
- [The Hill](https://thehill.com/homenews/state-watch/6106716-chicago-mayor-seeks-to-block-data-center-expansion-we-are-not-for-sale/) (Center)

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