Abbott hits the brakes on Texas data centers — but not the switch
Gov. Greg Abbott has spent years courting data centers as a symbol of Texas’s business-friendly economy.
Yesterday, he reversed course: no new data center will be approved to connect to the state’s grid until regulators complete a “comprehensive verification and audit” of every project in the interconnection queue.
What changed his mind
The shift didn’t happen overnight.
Abbott had already nudged regulators in June and July to shield residential ratepayers from data-center-driven costs. What forced his hand was twofold: developers’ noncompliance with a Public Utility Commission survey on water and power use, and a wave of grassroots anger that even loyal Republican counties couldn’t ignore.
Texas Agriculture Commissioner Sid Miller says the governor’s moratorium isn’t enough. He wants a special session of the Texas Legislature on the matter.
Texas now hosts 335 operating data centers and at least 248 more planned — second nationally behind Virginia, and on track to take the top spot. ERCOT‘s interconnection queue lists over 1,800 energy-hungry projects representing 474 gigawatts, more than five times the grid’s peak demand record.
Two data centers being built on San Antonio’s far west side are meeting with resistance from homeowners and environmental groups because they’re both constructing natural gas power plants and setting up dozens of diesel generators right next to neighborhoods.
Central Texas pushback
Communities from Hood County to San Marcos have organized town halls, resolutions, and even a local ban on new data centers — despite Texas counties lacking zoning authority to enforce it.
Residents cite noise, water competition, and rising electricity bills.
In Hood County, five of six proposed projects cluster in one area where locals recently lost a vote to incorporate specifically to gain regulatory power over industrial noise and pollution. At least one developer, Diode Ventures, has already pulled a planned East Texas project, citing Abbott’s tougher posture directly.
Industry, grid, and politics
The Data Center Coalition says it welcomes an audit that “showcases good actors” but worries about unnecessary delays. For ERCOT, the pause buys time to size up a queue that dwarfs current capacity — though it does nothing to slow demand already under contract.
Politically, the timing is pointed: Abbott faces Democratic state Rep. Gina Hinojosa in November, and polling from the Texas Politics Project shows 56% of Texas voters — 62% in rural areas — oppose data centers in their own community. Rural voters are Abbott’s traditional base, and Hinojosa has already branded him the “arsonist” now claiming to “put out the fire.”
Whether the moratorium reads as decisive leadership or election-year damage control may be decided at the ballot box.
PODCAST
Sources:
- Texas Tribune, “Data center approvals in Texas halted until audits completed, Gov. Greg Abbott says,” Aug. 3, 2026
- Community Impact, “Gov. Abbott orders audit of all proposed Texas data center projects,” Aug. 3, 2026
- Texas Tribune, “Data center company decides not to build in East Texas,” July 23, 2026
- Spectrum News, “The politics of data centers,” July 7, 2026
- KXAN Austin, “Gov. Abbott calls for banning data center development in rural Texas neighborhoods,” July 3, 2026
- CBS Texas / PBS News, “Democrats seize on AI data center backlash,” July 2026
- NBC 5 Dallas-Fort Worth, “Data centers face growing pushback during a week of action in Texas”
- AOL/Hood County News, “Hood County residents mobilize to rein in data centers”
One man is dead and two other people are hospitalized in critical condition after a Round Rock police officer shot a knife-wielding suspect during what investigators say was a domestic violence incident involving a stabbing early this morning.
The Round Rock Police Department is investigating an officer-involved shooting that occurred at approximately 1 a.m. in the 2800 block of Phoenix Way while officers were responding to a domestic violence incident.
During the response, an officer shot the suspect. The individual was transported to a local hospital, where they were later pronounced deceased.
There is no ongoing threat to the public.
Another domestic disturbance last night, this one in New Braunfels, ended with an arrest.
Authorities announced an arrest of the suspect involved in the shooting on Rainey Street that occurred on July 26. (Austin Police Department)
“Following further investigation, detectives determined that the individual previously identified as Suspect #1 was not involved in the robbery or the shooting and has been determined to be a witness in this case only. As a result, detectives are no longer seeking information regarding his identity or involvement.” — Austin Police Department
Bouray’s arrest follows an aggravated robbery reported in the 80 block of Rainey Street shortly after 1:20 a.m. on July 26. A man was seriously injured after being robbed and shot multiple times.
Residents in a South Austin neighborhood say they were left in the dark after two days in a row of SWAT standoffs in their area.
Austin Police and Austin Fire both report that they’ve overspent their overtime budgets by several million dollars this fiscal year and warn about their continued reliance on extra pay to maintain staffing levels.
A multimillion-dollar battle over how Austin spends the city’s tax money is being fought at City Hall on Thursday. The Austin City Council is deciding whether to increase the police budget while potentially slicing $5.4 million from social service programs.
Austin Fire Department crews extinguished a second-alarm fire Monday evening on the 14th floor of The SkyHouse Apartments, located at 51 Rainey St. in downtown Austin. First responders upgraded the call to a second alarm to bring additional resources to the scene as they worked to reach and put out the high-rise blaze.
Austin Mayor Kirk Watson on Monday met with the Ambassador of Mexico to the United States and the Consul General of Mexico on their visit to the city.
APD and Capital Area Crime Stoppers caught up with a wanted sex offender.
Officials in Hays County are looking for four suspects involved in the break-in of vehicles in the Sunfield subdivision in Buda.
Google has opened its 35-story “Sail Tower” in downtown Austin, filling a long-vacant landmark with employee workspaces and a high-tech hub for local nonprofits.
The 300-unit Hillside project on Parmer Lane was built in recent years. The general contractor for the project has a claim in the bankruptcy case worth over $20 million. (Austin Business Journal)
The City of Austin is pausing the William Cannon Dr. at Bluff Springs Rd. project after neighborhood feedback.
Nightly lane closures are ongoing downtown on the 1st Street Bridge.
August 3-15
6:30 p.m. – 4:00 a.m. (Monday through Saturday)
A boil water notice has been issued for thousands of Buda residents following a major water line break on Monday morning. The city said it was expecting for that repair to be completed last night. No word yet on whether the boil water notice is being lifted.
UPDATE:
WEATHER
MONDAY’S HIGH / LOW TEMPERATURES
AUSTIN-BERGSTROM INTERNATIONAL AIRPORT
CAMP MABRY
5-DAY FORECAST / AUSTIN, TEXAS
Two wildfires in Texas of note: one in Palo Pinto County is 85% contained.
The other blaze is in Jack County.
Recent polling is shedding more light on just how tight the margins will be in this fall’s race for the Texas seat in the U.S. Senate.
The Talarico campaign didn’t let yesterday’s date go by without notice:
Sen. John Cornyn, R-Texas, reached an agreement with the Department of Justice late Sunday to formally quash the agency’s fund for victims of alleged lawfare, unlocking the path to confirmation for attorney general nominee Todd Blanche. (Texas Tribune)
The Republican-dominated Tarrant County Commissioner’s Court will vote today on a proposal to eliminate almost half of the county’s Election Day polling locations, with a focus on Black, Brown and student-concentrated areas.
Governor Greg Abbott has called a halt to data center developments for an audit, but has taken no steps to change the loose regulations he has himself signed off on. Bipartisan resistance to data centers is mirrored in similar opposition to Flock surveillance cameras, and the new THC ban in Texas.
And Joe Rogan says the quiet part out loud, characterizing the Texas GOP as “predators”.
Three members of the hemp industry are suing the state of Texas for violating commerce protections after it was announced last week that nearly all hemp-derived THC products are illegal.
A jail escapee in Erath County was captured by Texas Game Wardens but most of the credit went to K-9 officer Lola.
TGW also offered a reminder that beginning this week, individuals age 17 and over must show valid proof of identification to obtain a recreational hunting or fishing license in Texas.
Since March 2024, Pornhub has been blocked in Texas due to a new state law requiring porn websites to verify the ages of users. Now, Pornhub wants Texas and other states with similar laws to rethink how effective they are. (Houston Chronicle)
Some students in North Texas are already back in class.
According to one analysis of the 21 most common school supply items by the Groundwork Collaborative and The Century Foundation, two progressive think tanks, prices are up about 7.7 percent with parents paying an average of $173.45 for their school supply haul. (Texas Standard)
2026 MLB TRADE DEADLINE
Rangers Stay Quiet at Trade Deadline, Make Only One Move
The Texas Rangers were relatively inactive as Monday’s 5 p.m. CT trade deadline passed, completing just one deal despite days of speculation that the team could become sellers.
Texas sent utility infielder Josh Smith and right-handed pitcher Josh Stephan to the Toronto Blue Jays in exchange for left-handed pitcher Adam Macko. Smith, a fan favorite who came to Texas from the Yankees in 2021, won a Silver Slugger award in 2024.
Astros Make Modest Move at Deadline, Fall Short of Bigger Needs
The Houston Astros’ 2026 MLB trade deadline came and went with a single notable transaction: starting pitcher Spencer Arrighetti was sent to the Toronto Blue Jays in exchange for center fielder Daulton Varsho.
Varsho, a former Gold Glove winner known more for his defense than his bat, is a free agent at season’s end, and slots in as Houston’s everyday center fielder. Arrighetti had fallen out of the Astros’ rotation plans due to persistent command issues and was on the injured list with foot nerve irritation.
Monday saw both the Rangers and Astros lose.
With the losses, the Astros snap a six-game winning streak while the Rangers extend their losing streak to six.
Both teams are right back at tonight.
Here’s the current AL West standings:
| Rank | Team | W | L |
|---|---|---|---|
| 1 | Houston Astros | 58 | 56 |
| 2 | Texas Rangers | 55 | 58 |
| 3 | Seattle Mariners | 55 | 58 |
| 4 | Athletics | 45 | 67 |
| 5 | Los Angeles Angels | 43 | 69 |
Houston sits atop the division, with Texas and Seattle tied for second a few games back.
33 DAYS UNTIL TEXAS FOOTBALL
Texas Longhorns 2026 Preview with Joe Cook | College Football Podcast
COWBOYS: Monday was the first day of padded practice for the Dallas Cowboys.
TEXANS: Jadeveon Clowney reunited with the Houston Texans on a one-year deal, bringing his pass-rushing skills back to the team that drafted him with the No. 1 overall pick in 2014 and where he spent five seasons.
The pads were on Monday at camp.
Nick Caserio, executive vice president and general manager of the Texans reflects on the work that has gone into building a consistent program alongside DeMeco Ryans and why past success does not change the need to establish a new identity every season. The conversation also covers contract negotiations, offensive-line chemistry, the rookie class and the difficult decisions ahead during training camp.
Let’s open up the musical time capsule and return to Gilley’s in Pasadena, Texas.
It’s the Fourth of July weekend and the then-world-famous country music nightclub was hosting a two-day concert event.
From that event, here’s Mickey Gilley and Jerry Lee Lewis performing together.
