Gov. Abbott’s data center audit is underway. Here’s what ERCOT is asking.
Texas Governor Greg Abbott has ordered a statewide audit of over 400 data center projects, pausing approvals for new large connections to the ERCOT grid. ERCOT has released a comprehensive survey, with questions on energy, water, finances, and ownership, that all affected data centers must complete by October 12. This initiative aims to address concerns about the impact of data centers on the state's power and water resources and may lead to new regulations.
Texas Governor Greg Abbott has initiated a statewide audit of over 400 data center projects, imposing a pause on approvals for new, large data centers seeking connection to the Electric Reliability Council of Texas (ERCOT) grid. This audit, announced last month, requires data centers to complete a community impact survey by October 12, released by ERCOT on Friday.
The survey encompasses more than 250 questions across nine sections, covering facility information, reasons for development, financial assistance, power self-sufficiency, water sources and consumption, cooling technologies, community impact, and ownership. Ed Hirs, a University of Houston Energy Fellow, described the survey as "very, very intrusive," particularly concerning questions about finances and ownership, suggesting it might deter some developers from building in Texas by changing the economic landscape for projects.
ERCOT is surveying 247 large data centers (requesting 75+ MW) and 214 medium data centers (25-75 MW). Projects failing to complete the survey will be reported to the Public Utility Commission of Texas and the governor's office, with compliance evaluated on a case-by-case basis. In addition to the survey, ERCOT and the Public Utility Commission are verifying a group of large data centers, dubbed "Batch Zero," to confirm their readiness for construction, including providing deeds and permits. This verification does not assess water usage, noise, or other community impacts.
Texas currently has the nation's fastest-growing data center market, with data centers accounting for about 90% of requests for 474 gigawatts of electricity from the state grid. The audit also addresses the state's struggle to assess data centers' water usage, with Governor Abbott ordering the Texas Water Development Board to penalize developers who have not responded to past water usage surveys. Maria Faconti, an energy regulation partner at K&L Gates, noted that some clients anticipate potential future regulations requiring data centers to provide their own power generation. ERCOT plans to complete its audit report by December, sharing findings with state regulators, the governor, and lawmakers, with new legislative changes possible next year.