Abbott halts data center power grid connection pending an audit of Texas’ systemic capacity
Texas Governor Greg Abbott has announced a moratorium on new data center developments across the state, specifically halting grid connections until regulators audit proposals. This action follows growing public backlash over potential environmental damage, noise pollution, and strain on the power grid. The audit will require developers to provide details on tax breaks, power and water usage, cooling operations, and ownership.
Texas Governor Greg Abbott has imposed a moratorium on new data center developments statewide, directing the Public Utility Commission of Texas (PUCT) and the Electric Reliability Council of Texas (ERCOT) to audit all proposals seeking grid connection. Developers must now provide extensive information, including details on tax incentives, power and water consumption, cooling methods, efforts to mitigate local impacts, and facility ownership.
This move comes amidst increasing public opposition at municipal and county levels, driven by concerns over environmental damage, noise pollution, and rising electricity costs. ERCOT, which manages 90 percent of Texas's electric load, is tracking 1,800 projects, 90 percent of which are data centers, demanding a projected 474 gigawatts—five times the grid's peak demand. Meta is notably constructing a large 1-gigawatt data center in El Paso, an area outside ERCOT's direct coverage.
Localities are also taking action: San Marcos is exploring an outright ban, while Denton and Fort Worth are proposing their own moratoriums. While the directive has received some positive feedback, Texas Department of Agriculture Commissioner Sid Miller has criticized it as