Texas Gov. Greg Abbott proposes new state actions to further restrict data center development in Texas, targeting both resources used by these facilities and the public incentives that help drive them. Multiple outlets report that Abbott calls for tighter oversight through state regulators and seeks changes to existing incentives tied to data center operations.

The proposals include requirements aimed at reducing water use, according to The Hill. Abbott also directs regulators to act through the Texas Public Utility Commission (PUC) and the Electric Reliability Council of Texas (ERCOT), and highlights concerns about energy reliability, electricity consumption, and potential costs to local residents. Business Insider similarly describes Abbott’s focus on energy use and the impact on Texans who may bear higher costs.

The New York Times adds that Abbott urges limits alongside a repeal of financial incentives for data centers, amid complaints from some rural Republican areas of the state. Across sources, the common elements are Abbott’s push for new restrictions, regulatory involvement by the PUC and ERCOT, and an effort to remove or curtail incentives that support data center growth.