AI data centers are adopting new cooling technologies that save water locally, but this shift is transferring water consumption to the power plants that supply their electricity. In Texas, this situation is fueling speculation about a potential moratorium on new data center construction. Market odds for a moratorium by January 2027 currently stand at 2.6%, while long-term expectations have significantly increased for December 2028. Attention is now focused on Texas regulatory bodies, particularly the Texas Commission on Environmental Quality and the Public Utility Commission of Texas, for potential action.
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