Texas, like many other states, is experiencing rapid growth in data centers. But concerns regarding energy costs and water consumption have prompted not only Democrat-led states, but also Republican-led states to implement regulations and even moratoriums. 

Republican Gov. Greg Abbott earlier this summer issued new standards requiring data centers to pay for their own grid interconnections and infrastructure costs, and to use closed-loop water systems. Meta today agreed to follow those standards when developing data centers in the Lone Star State. 

“We pay the full costs of our data centers’ energy and water use so they aren’t passed on to consumers,” Meta said in a press release. 

Texas director of Public Citizen, Adrian Shelley told Daily on Energy in a statement that the governor’s directive seems to have “pleased data center developers, but communities across the state remain concerned and angry.” 

Shelley added that until there is state legislation to protect communities, “Texans have little reason to believe Meta and others.” She noted that Meta’s proposed data center in El Paso would not be covered by Abbott’s standards since it is in West Texas and not within the state’s Electric Reliability Council grid. 

Abbott has even gone a step further, to place a statewide moratorium on data centers, while the state’s Public Utility Commission and Electric Reliability Council completes an audit on all AI facilities wanting to connect to the state’s grid. 

There are over 474 gigawatts of requests to connect to Texas’ energy grid, with about 90% of the requests being from data centers, Abbott said. 

President Donald Trump, who has encouraged the growth in data centers, recently criticized Abbott’s crackdown on data centers. 

The president told Punchbowl News in an interview on Friday that, “I think it’s a mistake. And I’m not taking positions, I just think it’s a mistake, because there are other communities that want it. When a community wants it, it means a lot of money is going to come into that community.”

Republican politicians are increasingly open to rules for data centers. Vivek Ramaswamy, for example, the GOP nominee for Ohio governor, has proposed new data center requirements and a moratorium on development until legislation is passed. 

As part of his proposal, Ramaswamy would have data centers cover nearby households’ electricity bills and would require them to reduce local property taxes. They also would have to comply with environmental standards. 

AMAZON UNDER FIRE OVER DATA CENTER THAT COULD HAVE MOST POLLUTING POWER PLANT IN THE COUNTRY: 

The new moratorium in Texas isn’t the only hurdle that Amazon will face as it looks to expand its AI operations, as the tech giant is coming under fire for backing what could be the largest single source of pollution in the U.S. for just one of its data centers. 

The details: Amazon confirmed to Daily on Energy today it is building a new data center campus in Pecos County, Texas, that will be powered by on-site generation that wouldn’t draw from the grid and raise electricity costs for local families. 

Documents first obtained by climate research blog Distilled reveal that the data center will primarily be powered by a 7.65 gigawatt natural gas power plant. This is enormous, far larger (in some cases double in size) than most power plants across the country. 

The largest power plant in the U.S. currently, according to data from the Energy Information Administration, is the hydroelectric plant in Grand Coulee, Washington, which has a capacity of just over 7 gigawatts. This is followed by the Palo Verde nuclear plant in Arizona, which has a capacity of just under 4 gigawatts. For comparison, the city of San Francisco is estimated to use around 1 gigawatt of electricity.

If built, this massive natural gas plant could emit up to 33 million tons of carbon dioxide each year, making it the largest source of pollution in the U.S. This is the limit allowed under the permits obtained for the project, and typically facilities do not reach the maximum emission limit on a regular basis. 

Amazon told Daily on Energy that the facility is expected to also power its operations in the area with solar and battery storage as well. 

The pushback: Amazon has said it remains committed to its goal of reaching net-zero emissions by 2040, though it remains unclear how it plans to offset the significant increase in pollution associated with the gas power plant. 

Margie Alt, director of the Climate Action Campaign, lambasted Amazon over the weekend, saying communities will pay “the consequences” of the increased emissions “with their health and their wallets.”

“If tech giants want to power an AI revolution, they must build the clean energy and upgrade the grid in ways that are necessary to power that revolution without saddling families already struggling with dirtier air and higher bills,” Alt said. 

Democratic Sen. Chris Van Hollen, of Maryland, has also criticized the tech giant for not pursuing more clean energy to power its AI operations, saying Amazon will be “polluting our air for their own financial gain.” 

“Working families and our environment cannot afford to bear the brunt of Big Tech’s race to the bottom,” he said. 

He called for legal guardrails in place for data center development, such as those outlined in a bill he introduced earlier this year. 

Van Hollen has been tracking the development of the massive natural gas plant since this spring, asking developers if they will implement any carbon capture on site or have plans to offset their emissions. 

All the rest

U.S. EMERGENCY STOCKPILES HIT ANOTHER MULTI-DECADE LOW: The Strategic Petroleum Reserve has hit the lowest level it’s been since January 1983, falling below 300 million barrels for the first time since it was filled, the Department of Energy reported today. The SPR held 298.7 million barrels as of last week, down from 6.1 million barrels of oil from a week prior.

Over the last two months, the Trump administration has recorded several historic lows for the SPR, far below the low hit under former President Joe Biden. (In July 2023, the SPR hit 346.7 million barrels after a release of 180 million barrels.) 

Republicans heavily criticized the Biden administration for its drawdown, claiming it threatened the ability to respond to energy crises.

Quick reminder: The SPR has a total capacity of around 714 million barrels across its four facilities and requires roughly 20% of that full capacity to remain operational. 

Read more from Callie on the latest drawdown here. 

WHITE HOUSE EXTENDS JONES ACT WAIVER: The White House has issued a 90-day extension to the Jones Act waiver, with some key changes. 

White House spokeswoman, Taylor Rogers wrote on X that the waiver would ensure that U.S. military and key industries maintain uninterrupted access to the resources. 

“Data shows the waiver has driven a significant increase in domestic ​deliveries of essential products such as gasoline, diesel, and jet fuel,” Rogers said. 

The third extension of the waiver comes with new terms, including a requirement that individual voyages undergo case-by-case review instead of granting foreign ships blanket exemptions.

The administration has faced growing pressure from the U.S. maritime industry and other Republican lawmakers, who warn the waiver could harm domestic shipping jobs. The waiver was set to expire on Aug. 16. 

TRUMP ACCUSED OF USING NATIONAL PARKS AS ‘PIGGY BANK’ FOR WHITE HOUSE UPGRADES: New reporting alleges that the Trump administration has re-routed an overwhelming amount of money from the National Parks budget to fund Trump’s vanity projects for the White House and National Mall in D.C. 

Records obtained by investigative journalist Scott MacFarlane reveal that more than $323 million has been made available for upgrades and projects on the White House grounds this year alone. For comparison, just $7.5 million was spent on White House grounds projects during 2024. For the National Mall, nearly $100 million has been made available this year, up from $9 million in 2024. 

Internal park service documents reveal that much of this cash was redirected from dozens of major U.S. parks, such as Yellowstone, Yosemite, and Grand Canyon. In fact, the total funding for the White House and National Mall projects is more than all the funding set aside for at least nine national parks, including Yellowstone, Grand Teton, Joshua Tree, and Zion. 

Key quote: “The National Park Service is being used as a piggy bank for Trump’s vanity projects,” said Tim Whitehouse, executive director of the nonprofit Public Employees for Environmental Responsibility. “The National Parks Service and the Department of Interior are giving Trump all of the money that he wants.”

As a reminder: The report comes just months after it was revealed late this past spring that around $67 million worth of entrance fees from National Parks were being used to beautify D.C. This use of National Parks funds was deemed legal under the Federal Lands Recreation Enhancement Act of 2004, which requires at least 80% of revenue from entrance fees stay at the national park where the fee was charged, though the other 20% is permitted to be used for facilities and NPS locations that do not charge any fees.

EUROPE SUFFERS RECORD HEAT WITH NO RELIEF IN SIGHT: Western Europe endured the hottest June on record, according to the Copernicus Climate Change Service. 

The United Kingdom and France will be bracing for their fifth heat wave this summer. The extreme heat has also fueled fast-growing wildfires across the continent. 

France’s national weather agency said that temperatures could reach 104 degrees Fahrenheit in southeastern France tomorrow. A heat health alert has been issued for most of England starting tomorrow, with temperatures set to climb to 96 degrees Fahrenheit. 

ICYMI – FEDERAL COURT GRANTS EPA REQUEST TO PAUSE RULING OVER CLEAN ENERGY GRANTS: The U.S. Court of Appeals on Friday granted a Department of Justice request to pause its recent ruling that the Environmental Protection Agency cannot suspend $20 billion in clean energy grants from the Greenhouse Gas Reduction Fund as the agency petitions the Supreme Court. 

The fund was established by the Biden administration’s Inflation Reduction Act. 

The money can stay frozen throughout the proceedings, if the Supreme Court decides to take the case. The DOJ said it would petition the Supreme Court no later than Nov. 2. 

A LOOK AHEAD: 

Aug. 10 – 13 The 2026 National Air Quality conference is being held in Omaha, Nebraska.

Aug. 11 The California Powers Up Energy and Policy Solutions Summit is taking place in Sacramento, California. 

Aug. 12 Renewables UnWind Philadelphia is being held in Philadelphia.

Aug. 13 Advanced Energy United is holding a virtual panel titled, “Working with Current and Future Governors to Deliver Affordable Energy.”

RUNDOWN

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