Texas freezes new AI data centres

Washington, Aug 23 (IANS) Texas Governor Greg Abbott said on Sunday that his state had paused new artificial intelligence data-centre projects amid growing public concern over their consumption of water and electricity. The decision marks a sharp shift for a Governor who had sought to make Texas the centre of the US artificial intelligence industry. It comes as opposition to the rapid expansion of data centres grows across several American states. "I have pressed pause on any new data centre being able to join the operations in the State of Texas," Abbott told ABC News. Abbott said projects would have to meet new requirements before being allowed to operate. Developers must disclose their expected water consumption and demonstrate that they will not draw supplies needed by local communities. They must also avoid taking electricity required by consumers and show that their operations will lower power costs, he added. "These are standards that are now being universally applied by all the data centres in the State of Texas," Abbott said. Texas has more than 300 data centres operating and at least 200 others in the pipeline, according to an ABC News analysis. Technology companies have invested hundreds of billions of dollars in the facilities that house the computer chips and servers required to run AI systems. The projects have brought construction work and capital investment. Residents, however, fear they will increase utility bills, consume limited water supplies and destroy farmland. Hundreds of people recently attended a 13-hour protest against two proposed data centres, ABC News reported. Opposition has crossed party lines and is becoming an issue ahead of the US midterm elections. Abbott blamed the industry for failing to consult affected communities before beginning construction. "They basically dug their own grave for the problem that's been caused for them, and that's why they got the backlash they deserve," he said. The Governor said data centres would now need approval from local communities before operating. "Gaining the support of people in local communities is essential," Abbott said. "No data centres disturbing local communities in Texas." President Donald Trump criticised the Texas pause. He said that turning away data centres would be a mistake because the AI industry "could be bigger than oil". The issue has also placed political pressure on candidates in Ohio, Michigan and Pennsylvania. Republicans privately warned that support for data centres could hurt their chances of retaining a Senate seat in Ohio. A Republican Senate candidate in Michigan has backed a one-year moratorium. --IANS lkj/ksk/khz