Abbott orders audit of Texas data centers before new projects can connect to grid
Governor Greg Abbott has ordered a comprehensive audit of all data center projects seeking to connect to the Texas power grid. The audit will assess compliance with state requirements regarding tax breaks, water and electricity usage, and community impact before any new projects are approved. This directive follows calls for a data center moratorium from State Representative Gina Hinosa, who deemed Abbott's order "political theater".
Texas Governor Greg Abbott has issued a directive for state energy regulators to conduct a comprehensive audit of all data center projects planning to connect to the state's electricity grid. The order, announced Monday, stipulates that no new data center projects will be approved for grid connection until officials determine their compliance with state requirements. The audit will scrutinize various aspects, including the extent of tax breaks received by data centers, their water and electricity consumption, and their broader impact on the community.
This executive action occurs 77 days before early voting begins in Governor Abbott's re-election campaign against Democratic State Representative Gina Hinosa. Last month, Representative Hinosa had publicly called for Governor Abbott to impose a data center moratorium, urging a halt until lawmakers could reconvene in January to address the issue. Following Abbott's recent order, Hinosa described it as "political theater," while Abbott, who had previously issued another data center directive in June, stated that his current action is aimed at benefiting Texans.