TEXAS
New Natural Gas Units Increase Houston Area Grid Capacity by 456 MW
NRG Energy has completed the construction and commenced the operation of natural gas simple-cycle generating units at its TH Wharton Generating Station in Houston. These new units provide a capacity of 456 MW, which is sufficient to power more than 100,000 homes during peak demand. The project was supported by Gov. Greg Abbott’s Texas Energy Fund Loan Program, which aims to enhance reliable power generation to meet the state’s expanding electricity requirements. Construction generated more than 500 jobs.
Data Center Regulations Proposed by Governor Abbott
Gov. Greg Abbott released regulatory recommendations for data centers, aiming to ensure they bear the costs of their growth. These include requiring data centers to add power generation to the grid, pay for grid interconnection, use closed-loop water systems and report electricity and water use. Abbott also proposes repealing sales tax exemptions for data centers and establishing best-practice standards to address community concerns.
Meta Data Center Project Survives City Council Vote
The El Paso City Council in June rejected a plan to terminate the city’s agreement with Meta for its substantial Northeast data center. The City Council voted 5-3 to reject a plan that would have instructed city staff to initiate negotiations to terminate the company’s 380 Agreement and other incentives, thereby severely hindering the project’s progress.
Swisher County Solar Project Secures Funding
Vesper Energy secured $236 million in debt financing for its 201MW Nazareth Solar project in Swisher County. The project, expected to generate enough electricity to power 53,000 homes annually, will occupy over 2,400 acres and is scheduled to begin construction in June 2026 with an expected completion date of Fall 2027.
Hill County Issues Moratorium on Data Center Construction
Hill County has approved a one-year halt on the construction of new data centers in unincorporated areas. The decision was made to address public safety and health concerns. The 3-2 vote by the county commissioners in Hill County, located approximately 55 miles south of Fort Worth, marks the first instance of a Texas county implementing a moratorium on the rapidly expanding data center industry. Residents and local officials had expressed their concerns about the potential impact of a proposed 300-acre development by the Dallas-based developer Provident Data Centers in north Hillsboro.
LOUISIANA
State Outlaws Climate Change Lawsuits Against Oil and Gas Companies
Louisiana has joined a select group of Republican states that have recently enacted legislation aimed at prohibiting lawsuits against oil and gas companies over the adverse effects of climate change. The Louisiana Energy Protection Act, authored by state Representative Brett Geymann, of Lake Charles, seeks to prevent lawsuits filed by states and local jurisdictions in other parts of the United States from being heard in Louisiana. Nationwide, about 30 lawsuits seeking to hold industry accountable for the consequences of climate change have been progressing through the legal system, but none have been filed in Louisiana.
Coushatta Sawmill Rebuild to Expand Production and Generate Jobs
C&C Forest Products intends to invest more than $21 million in rebuilding and modernizing its sawmill in Coushatta, following a fire that destroyed the facility in 2025. The newly constructed mill will feature updated equipment and a redesigned site layout, aimed at enhancing efficiency and expanding the production of specialty lumber and timbers. The project will retain 27 existing employees and generate 77 new positions. Louisiana Economic Development estimates that the project will also create an additional 256 indirect jobs, resulting in a total potential employment impact of 333 jobs in the region.
FEMA Approves Funding Extension for New Orleans Roadwork
New Orleans will be able to complete its extensive roadwork program after federal officials approved a long-awaited funding extension, providing the city with an additional two years to finalize expenditures. City officials will have until June 2028 to utilize the remaining $1.7 billion in federal funding to complete the 6,000-block initiative.
Ouachita Parish Facility Will Manufacture Electrical Components
Faith Technologies Inc. announced an investment of $80.5 million to establish a 500,000-square-foot manufacturing facility in Monroe. The project is anticipated to generate more than 500 direct and indirect jobs and provide training and skills certification opportunities for employees. The facility will support its Excellerate brand and manufacture electrical assemblies and modular energy solutions. Operations are projected to begin in the spring of 2027.
Five Billion Dollars Invested in First Floating LNG Facility
A project to construct the United States’ inaugural floating liquefied natural gas (LNG) export terminal off the Louisiana coast has secured $5 billion in financing. Delfin Midstream, a Houston-based firm, aims to construct the world’s largest floating LNG facility. This facility will be connected to an undersea pipeline that the company is repurposing to transport natural gas from onshore locations to a platform situated approximately 40 miles off the coast of Cameron Parish. The state already boasts four operational export terminals.
Rare Earths Refinery Project Funded by the DOE
The U.S. Department of Energy has selected a project in Louisiana to extract rare earth elements from waste streams. Spearheaded by the Colorado School of Mines and Element, the project, bolstered by $67 million in federal funds, aims to establish a facility in Louisiana that will extract and refine rare earths from bauxite waste. The facility is expected to conduct commercial-scale testing of the process and produce between 150 and 1,000 metric tons of rare earth elements annually.
MISSISSIPPI
U.S. DOJ Supports xAI In Data Center Pollution Case
Elon Musk’s data center company, xAI, faces a lawsuit from the NAACP over pollution concerns from dozens of mobile gas-powered turbines at its Southaven facility just south of Memphis, Tenn. But the U.S. Department of Justice recently intervened in the case, telling a federal court that shutting down the facility would be a threat to national security, according to the New York Times.
The lawsuit by the NAACP alleges that pollution from “mobile” gas turbines sitting on trailers should be regulated under the Clean Air Act and are harming nearby Black neighborhoods. However, the Mississippi Department of Environmental Quality allows mobile turbines to operate without permits for up to a year.
Winter Storm Fern Recovery Funds Awarded
FEMA awarded the City of New Albany more than $948,000 to assist with debris removal from January’s winter storm Fern. The storm, which caused significant damage across multiple states, resulted in more than $400 million in damages in Mississippi alone. Union County, along with 33 other counties and the Mississippi Band of Choctaw Indians, was among the 34 affected by the storm and approved for all funding categories of FEMA’s Public Assistance program. This program assists in funding repairs to public buildings and infrastructure.
ALABAMA
RESTORE Funding Awarded
Gov. Kay Ivey announced $87 million in funding for coastal restoration projects in Alabama. The projects, approved by the Gulf Coast Ecosystem Restoration Council (RESTORE), aim to restore and protect Alabama’s coast, improve waterways and preserve natural resources. The projects include wetland creation, beach renourishment, water quality improvement and collaboration with Mississippi on island restoration. Overall, more than $403 million was approved for efforts throughout the Gulf Coast states.
Lowndes County Residents Oppose Data Center Plans
Residents of Lowndes County are expressing their opposition to the construction of a hyperscale data center campus, Project Red Clay. The data center campus, consisting of four large buildings, a warehouse and an office, is planned for construction on 800 acres. The facility is expected to require 1,500 megawatts of energy and up to 100,000 gallons of water daily. Residents have concerns regarding the potential environmental and health impacts of the project.
Coal Ash Lawsuit to Continue
A prolonged court battle over the 21.7 million tons of coal ash stored in one of Alabama’s most ecologically sensitive areas will persist after the U.S. 11th Circuit Court of Appeals ruled that a lawsuit filed by Alabama-based environmental group Mobile Baykeeper challenging Alabama Power’s plans to leave the coal ash in place can proceed. This decision overturns the dismissal of the complaint by a lower court. Mobile Baykeeper’s lawsuit contends that the nearly 600-acre coal ash pond at Alabama Power’s James M. Barry Electric Generating Plant, located near Mobile, violates the Environmental Protection Agency’s coal ash regulations. The primary reason for this contention is that a significant portion of the coal ash remains saturated with groundwater.
