Mark Rober

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Published: 2026-09-22 • Permanent link

Regulatory body puts the brakes on all new data center permits in Texas, sending shockwaves through the tech industry. Equinix and Digital Realty, two of the country's largest data center operators, have been left reeling from the sudden change. The halt affects several major data centers in the state, including Equinix's 15-story data center in Irving, Texas. The news has sparked a sharp decline in the stock prices of both companies, with Equinix's shares plummeting by 12% and Digital Realty's shares falling by 9% in early trading.

This move has significant implications for investors and the broader economy. Data centers are a critical component of the tech industry, providing the infrastructure for cloud computing, artificial intelligence, and other high-performance applications. The halt in new permits could lead to a shortage of data center space, driving up costs for companies and potentially slowing down the growth of the tech sector. As a result, investors may be forced to re-evaluate their strategies and consider alternative locations for their data centers.

The data center boom in Texas has been one of the most significant trends in the tech industry in recent years. The state's business-friendly environment, low costs, and abundant power supply have made it an attractive location for data center operators. Since 2018, the number of data centers in Texas has grown by over 50%, with many of the largest operators, including Equinix and Digital Realty, establishing major facilities in the state. Experts say that the halt in new permits could be a temporary setback, but it may also mark the beginning of a shift towards more sustainable and environmentally-friendly data center development.

The long-term impact of the halt on the data center industry is still unclear, but it may lead to a renewed focus on sustainability and energy efficiency. Some experts argue that the industry is due for a shift towards more environmentally-friendly practices, and the halt in new permits may provide the catalyst for change. As the industry continues to evolve, investors and companies will need to be prepared to adapt to changing regulatory environments and shifting consumer demands. With the data center industry expected to continue growing in the coming years, it will be interesting to see how the halt in new permits plays out and what opportunities and challenges it presents.