Maryland and Texas Adopt New Rules to Curb Data-Center Expansion Amid AI Surge
Governor Wes Moore signed an order creating a review process and public dashboard for large data centers in Maryland, while Gov. Greg Abbott halted Texas permits pending audits of power and water use.
Maryland Governor Wes Moore issued an executive order establishing a statewide framework for large data-center projects, mandating a uniform review of their effects on the power grid, water resources, communities and the economy for facilities of 25 MW or more. The order creates a task force drawn from several state agencies and requires a public dashboard that will disclose each project's location, developer, expected electricity and water use, and the task force’s determination—aligned, conditionally aligned or not aligned.
Moore also asked the legislature to repeal the 2020 data-center sales-tax exemption, though that action requires separate legislative approval. Meanwhile, Texas Governor Greg Abbott ordered the Texas Commission on Environmental Quality to pause all data-center permits until comprehensive audits of their power and water demands are finished, building on earlier orders for ERCOT and the Public Utility Commission to scrutinize grid connection requests.
The Texas pause targets the roughly 90 % of new power requests tied to data centers and seeks to ensure developers bear infrastructure costs. These moves illustrate a broader national debate, with states ranging from New York’s one-year moratorium to Nevada’s tax-and-water requirements, as policymakers balance AI-driven demand against local resource constraints and community concerns.
Why it matters
State leaders are tightening oversight of data-center projects, affecting AI infrastructure growth and local resource use.
How this story developed
- Aug 4 Texas governor pauses new data center approvals pending power grid audit
- Aug 30 Austin’s city council is set to vote on a resolution that would create a specific land‑use category and review process for large AI data centers.
- Aug 31 President Trump posted on Truth Social that communities rejecting AI data‑center projects will become “backwards and poor.”
- Sep 1 Nvidia announced quarterly revenue of $96.2 billion, surpassing analyst forecasts.
- Sep 2 At a virtual G‑20 technology ministers’ session, Mark Zuckerberg and Elon Musk called for accelerated AI data‑center construction and additional power capacity.
- Sep 2 Trump labeled communities that reject data‑center projects “backwards and poor” and warned that China would welcome such resistance.
- Sep 4 The article warns that Republican campaigns are blaming China for opposition to AI data centers, while voters across party lines are increasingly hostile to the technology.
- Sep 12 The House is set to debate the Ratepayer Protection Act, a measure aimed at easing power costs for data centers and appealing to voters concerned about AI-driven utility bills. In the Senate, a crypto market-structure proposal is expected to face a tough vote amid ethics disputes involving Donald Trump, while the bipartisan Protect College Sports Act looks likely to advance with strong backing from donors. Lawmakers are racing to pass these initiatives before a three-week Senate session ends and the midterm elections arrive.
- Sep 13 Jon Husted introduced legislation to shield consumers from rising electricity bills linked to data‑center demand.
- Sep 15 The Global Dialogue on AI Governance has now highlighted AI’s impact on voter registration and results management.
- Sep 17 A bipartisan House bill to shift data‑center infrastructure and energy costs to tech firms has been introduced.
- Sep 21 Senator John Fetterman publicly endorsed President Trump’s data‑center push, aligning with the administration despite broad opposition.
- Sep 22 A new Data & Society report finds that more than 60% of Americans, especially Pennsylvanians, oppose new data-center construction, citing cost, health and environmental worries.
- Sep 24 Trade unions have voiced support for the projects, citing promised jobs.
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