Data center development has become a flashpoint in Texas as state officials respond to growing concerns about grid reliability, electricity costs and the pace of infrastructure growth. Recent actions by Governor Greg Abbott, including audits and permit pauses, have introduced new uncertainty into the development pipeline and raised questions about the long-term competitiveness of the Texas market.
Bracewell’s Jared Berg told the Financial Times the combination of regulatory uncertainty and rising project costs could influence where developers choose to invest.
“Developers will be forced to consider whether their projects remain viable,” Berg said.